Today is the last FOMC meeting until after the election... begging the question of just how 'dovish' will Fed Chair Powell be - to keep the stock market dream alive (and potentially President Trump's re-election hopes).
Remember, in August 2019, ex-Fed President Bill Dudley made a "modest proposal" in a Bloomberg op-ed in which he advised Powell to take a political stand against enabling Trump's trade war, and even go so far as to push the economy into a recession to prevent Trump from getting reelected!
Central bank officials face a choice: enable the Trump administration to continue down a disastrous path of trade war escalation, or send a clear signal that if the administration does so, the president, not the Fed, will bear the risks - including the risk of losing the next election.
And the punchline:
"There’s even an argument that the election itself falls within the Fed’s purview."
So far Powell hasn't followed Bill Dudley's virtue-signaling proposals...
We cannot wait for the Dems to demand a probe into The Fed's ongoing dovish-tilted decision...
Bloomberg Senior U.S. Economist Yelena Shulyatyeva says the post-FOMC meeting press conference will provide a good opportunity for Fed Chair Powell to clarify how the central bank plans to implement its new average-inflation targeting framework.