The Fed hates politics. Now it’s trying to cut rates in an election year.

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https://www.washingtonpost.com/business/2024/03/06/fed-economy-election/

Washington Post

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The Washington Post is a major American daily newspaper published in Washington, D.C. It is the most widely circulated newspaper in the Washington metropolitan area and widely read around the country. The newspaper has won 47 Pulitzer Prizes. It employs around 800 journalists and had a 2015 daily circulation of 356,768. Its digital circulation was 1,000,000 in 2018.

Jeff Bezos bought the paper in 2013. Tensions between he and the newsroon have continued; in 2024 and 2025, multiple personnel resigned over the paper's non-endorsement of Kamala Harris and editorial changes advanced by Bezos.

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The Federal Reserve is loath to get involved in elections or politics. But 2024 is already shaping up to be quite the collision course.

Central bankers are eyeing multiple interest rate cuts starting sometime this year. And as the months pass, the chances grow that those cuts end up juicing the economy in the run-up to Election Day — just as Republicans and Democrats fight to leverage the economy in their appeals to voters.

Decisions about interest rates, Fed officials say, are based solely on how the economy evolves, and whether inflation keeps trending down. Federal Reserve Chair Jerome H. Powell is likely to reiterate that stance during two days of congressional testimony this week, which began Wednesday before the House Financial Services Committee.

“We do not consider politics in our decisions. We never do. And we never will,” Powell said on CBS News’s “60 Minutes” last month. “And I think the record — fortunately, the historical record really backs that up.”