Neoconservative NeverTrumper Bill Kristol is begging the U.S. Federal Reserve to cut interest rates ahead of the 2024 presidential election in the hopes it will juice the economy and boost the chances that the 81-year-old Democrat incumbent Joe Biden will win re-election. “Dear Fed, How about one rate cut for the economy, and one more for democracy?” Kristol wrote in a post on X (formerly Twitter) on Wednesday as the central bank announced its decision on interest rate levels.
Unfortunately for Kristol, Federal Reserve Chairman Jerome Powell threw cold water on the likelihood of the central bank slashing rates before the November presidential election. “Today, the [Federal Open Market Committee (FOMC)] decided to leave our policy interest rate unchanged and to continue to reduce our securities holdings,” Powell said Wednesday afternoon.
The committee’s dot survey of members, released along with the FOMC’s rate decision, suggests that the central bank anticipates a single rate cut for the remainder of 2024 at most. Despite the economic realities, Kristol—along with many Democrats—is pushing the Fed to risk a dangerous resurgence of inflation in the hopes cheap capital will swing the election for Biden.
Even more concerning is that Kristol‘s call for interest rate cuts is indicative of a growing trend among opponents of former President Donald J. Trump with the weaponization of government institutions for partisan political purposes. The National Pulse reported in April that Joe Biden promised the Federal Reserve would cut interest rates at least once before the end of December. Biden’s announcement was unprecedented as the White House is expected to respect and not interfere with the U.S. central bank’s independence.
Polling data has continually shown Biden struggling with critical voter demographics regarding his handling of the U.S. economy.
Dear Fed,
How about one rate cut for the economy, and one more for democracy?#KiddingNotKidding
— Bill Kristol (@BillKristol) June 12, 2024