BLAMING THE PARTY-POOPER
Last week, we noted a significant uptick in Democrats turning on a central bank they have treated with the utmost courtesy ever since the Biden Administration tied its political fate to whatever economic outcomes the Fed was aiming to accomplish. We shall see what the midterms say about what Americans think about the combination of acute inflation and interest rates higher than many are able ever to remember, but the President’s stout defense of economic prosperity, Secretary Yellen’s disavowal of any recession, and the Administration’s increasing focus on corporate culprits make it clear that the Treasury Secretary stands by her Fed and the White House – at least for now – backs her up.