The Republicans’ positive plan
Nearly everyone knows that inflation is a problem, and that there are various proposals to solve it. However, some Republicans this year have been spouting a conspiracy theory: that the U.S. Federal Reserve is waiting until after the November 2022 midterm elections to raise interest rates, in order to help President Joe Biden and the Democratic Party. While this is just the latest in a long line of right wing conspiracy theories about the Fed, this particularly silly theory can be easily debunked a few steps:
–The current Federal Reserve Board Chairman is Republican Jerome Powell, who was appointed by Donald Trump. This fact alone should be enough to destroy the conspiracy theory. Moreover, of the seven Governors on the Fed’s board, three are Republican, which is normal during a Democratic administration. And in addition to Powell, these other Republicans were also appointed by Donald Trump. Given that the Fed Board’s votes to raise interest rates this year typically have been unanimous, one would have to believe the truly ludicrous theory that these Trump appointees are voting to help Biden and the Democrats.
–As indicated above, the Fed has been raising interest rates all year long. The Federal Funds Benchmark rate, which started at .25 percent early this year is now 3-3.25 percent, enough to sharply raise mortgage, auto loan and other rates. So if the plan was to delay rate increases until after the election, the Fed has failed miserably.
