USA - Could it be possible that the Federal Reserve is attempting to influence the outcome of the upcoming midterm elections? Just weeks before Americans will go to the polls, the Fed has been making headline after headline with talk about interest rate hikes. And they very well understand that interest rate hikes will rattle investors and slow down the economy. In fact, every Fed rate hiking cycle since 1957 has ended in either a stock market crash or a recession. So could the Federal Reserve be doing this on purpose in order to sabotage Donald Trump and the Republicans? Nobody is really asking this question, but perhaps we should be.
As I have explained many times, nobody has more control over the economy than the Federal Reserve does, and nobody has more influence over the financial markets than the Federal Reserve does either. If the American people truly understood the Federal Reserve, there would be “End the Fed” protests in every city in America tomorrow morning.
President Trump has been criticizing the Fed recently because he understands that many Americans vote based on how their pocketbooks are doing. If the economy is doing well, his re-election chances go up, but if the economy tanks there is a very good chance that he could lose in 2020. And if stock prices really start to tumble over the next few weeks, that would really help Democrats in the upcoming mid-term elections.
Let us not forget, however, that things can change dramatically in politics in just a few days. With just a few weeks to go before the 2016 election it looked like Hillary Clinton would win by a landslide, and we all saw what happened. One major event could change everything, and without a doubt this is going to be one of the most interesting midterm election cycles in ages.