, Columnist
The Fed Risks Helping Trump
Raising interest rates now might stifle growth before the election, giving the Republican a boost.
Stop. Be serious.
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Given Donald Trump’s rather inconsistent and worrying statements about his plans for the Federal Reserve, it would be ironic if the central bank provided the impetus that carries him over the finish line in this November’s presidential election. But there is a small chance that might happen.
The Fed is poised to raise interest rates again, after raising them in December for the first time in more than nine years. Janet Yellen, the Fed chair, said last month that if the economy continues to do reasonably well, the central bank will hike interest rates this summer or fall. Some non-hawkish Fed governors have echoed her statement. Markets seem to believe that the Fed is now serious about this.