Tag Archives: vincent are bundock

The Fed and Interest Rates: Biased Toward the GOP?

ANN ARBOR — With the elections less than a week away, it’s worth considering that the party of the president influences the policy behavior of the Federal Reserve Bank, according to a new University of Michigan study.

The Federal Reserve Bank increases interest rates before the presidential elections when Democrats are in office, but lowers the rates when Republicans control the White House. The independent bank finds it easier to accomplish its policy goals when Republicans control the White House than when Democrats do, the researchers say. (more…)

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