Is the Fed’s Rate Cut a Move to Boost Kamala Harris’ Campaign?

A recent 50 basis point interest rate cut by the Federal Reserve is seen by some as a move to support Kamala Harris’ presidential campaign.

In a recent interview with Cointelegraph, the co-founder of BitMEX suggested that Fed Chair Jerome Powell and Treasury Secretary Janet Yellen are collaborating to enhance Harris’s chances of winning the presidency.

He noted that the U.S. economy is currently strong, highlighting a GDP growth of around 2% in the third quarter and historically low unemployment rates.

This raises questions about the necessity of the Fed’s rate cut, which he views as the largest since March 2020. He speculated that the aim is to elevate financial markets further, making voters feel more affluent as they head to the polls in November.

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However, there are concerns that this aggressive monetary policy could lead to negative repercussions, particularly an increase in inflation.

He criticized the logic of making borrowing cheaper while the government continues to engage in reckless spending, questioning how that approach would improve the economic landscape.

Alexander Stefanov