The Fed is trying to fix the 2016 election for Jeb and the Republicans

[Yavin4]

The recovery has just now started to gain some momentum, and here comes a rate hike to throw it right back into recession. All in time for the 2016 election. This is the same shit from 1999 when the Fed raised rates for a year and a half and soften the economy so that Bush would be able to win.

This is bullshit.

[awake]

1. What rate hike are you talking about please do not make sh*t up and post it.

The Fed did not rase the "Fed Rate" today

[NuclearDem]

3. They didn't raise it today, but...

http://mobile.reuters.com/article/idUSKBN0ME0D520150318?irpc=932

[awake]

7. Even though they removed the word "patient" from its language

The reaction has been that the Fed may wait till late in this year or maybe 2016 before raising the "rate" as opposed to in June as most investors expected.In reaction to the Fed statement the Markets have go up by more than 1% I hardly think anything that the Fed did today was in anyway to "fix the 2016 election for Jeb and the Republicans"

[AverageJoe90]

2. Not sure that the economy matters quite as much as in 2000, though.

In case you haven't noticed, there are more than a few people getting tired of the Republicans' unwillingness to govern properly, and not only that, but also of the GOP's increasing amounts of both political and social extremism as well; one may say what one will about 2014, but that was honestly, if anything, a last hurrah for the current incarnation of the GOP before the house of cards does begin to collapse.....and, by just about any odds, going to have to take both a spectacularly mediocre campaign on the part of the Democrats and massive amounts of election fraud to pull off a victory under any of the likely GOP candidates.

[blkmusclmachine]

4. Usually our guy just pulls a "John Kerry" to help out a Bush.

[Man from Pickens]

5. they're not going to raise rates

they can't, they're locked into the policy by a self-reinforcing vicious cycle

The "recovery" is just a speculation bubble, that's why only the top 1% has benefited economically during the past 6 years. It ain't a recovery for anyone else.

[el_bryanto]

6. If the recovery is gaining momentum then a rate hike is going to come along eventually

while it may cause short term pain it is a sign that things are getting better, in their opinion. It depends on how fragile the recovery is. If you think it's just a bubble that only benefits the top 1% than this might well pop that bubble. On the other hand if you believe that the fundamentals are sound, than a rate hike is coming along eventually.

Bryant

[Romeo.lima333]

8. that's how the dems could frame it "it is a sign that things are getting better"

[ChairmanAgnostic]

9. it appears as though your economic education is somewhat lacking.

The simplistic analysis you provide is not only wrong, it is clearly, undeniably, and terribly wrong.

Right now interest rates are so low, that it is as if the US is trying to shovel money into banks to get it into the hands of people. It works, but poorly. If you give some incentive to the banks to do it better, and if you raise interest rates slightly, there will be net advantage to everyone.

Obviously, a much better move would have been a stronger stimulus, perhaps even a buy out of all private mortgages that were underwater or close to it. But the GOP only allows billions being sent to corporations, not to those most in need.

[Yavin4]

10. The only stimulus in this economy is the Fed.

The Republicans will not allow for a real fiscal stimulus. In fact, the federal government has been cutting back on spending which has made the recovery sluggish and uneven.

A rate hike, even a small one, will push the economy back into a recession just in time for Fall 2016.

Raising rates is a bad idea at this time.

Also, go fuck off about my economic education.

[awake]

11. we can be polite here can't we

I agree that the fed has been supplying the only stimulus but and as for "Raising rates is a bad idea at this time." goes I repeat it is not happening! if anything todays statement suggests that it may happen later than sooner, your premiss that the Feds are trying to rig the 2016 election is unfounded in my opinion.

[ChairmanAgnostic]

14. SOME can be polite. Others are just misinformed, willfully ignorant

Or trying to create a stink.

[DemocratSinceBirth]

16. Both of you make good points

If you raise interest rates it makes it more profitable for the banks to lend money. But any rise in interest rates potentially threatens the recovery.

In any case Janet Yellen is an Obama appointee and a Democrat. I don't see her purposely undermining the president. And rate moves are highly unlikely without the Fed Chief's acquiescence.

Also, it's more important how the economy is doing in the Spring of 16 because by November the economy has already been factored into voters calculations.


We are all on the same side here or hopefully so. We should try to be nicer to one another.

[DesMoinesDem]

12. "The recovery has just now started to gain some momentum" What recovery?

The Fed dropped rates to 0 and after SIX AND A HALF YEARS of no increase even an increase of 25 basis points could send the economy into a recession. That can't happen in a healthy economy. Newsflash: There is no recovery. There never was a recovery. A Fed bubble is not a recovery. The only difference with this bubble is when it pops the Fed is already going to be at near zero at the start of it. It will be a disaster. Obama will be very, very lucky if he can get out of office before that happens. But the timing looks more like the end of Bush's term.

[onethatcares]

13. I'm really uneducated in these financial things,

but, is that when austerity in the U.S.will raise it's ugly head and send the rest of the working class into a tailspin?

[DemocratSinceBirth]

15. Isn't Janet Yellen an Obama appointee?

I have to trust her and him.