Desperate Biden Family Campaign Now Wants Fed Rate Cut For Election

At the June FOMC meeting, the Federal Reserve set the stage in its statement, and the Chairman’s press conference, for one interest rate cut by the end of the year, probably in December,

Now in the past few days the Fed Fund futures are suddenly pricing in a 65% chance of a rate cut in September.

Why?

Inflation numbers have not improved.

The unemployment rate has not gone up, and the stock market has not fallen.

In fact, if anything, the stock market rally is so narrow now, and it’s valuation is so high, that it is trading, with such super low volatility, as if to say that interest rates are not high enough to stop market speculation, so any rate cut would be unnecessary.

Rate cuts should be used for times when the economy weakens or the stock market has a real decline, and not delivered when inflation is high and the market just made a new high.

But, there it is, a cut by September is starting to be priced in now.

Everyone is talking about the poor Biden debate, where he rambled on at times making no sense. Since that debate he has yet to answer any reporters question or make a spontaneous appearance in public. He got on TV last night and denounced the Supreme Court and then walked away and took no questions.

What he has done is read teleprompters and his campaign has put together a few carefully choreographed video clips, to put on social media for meme messaging, such as this one.

And this one…

Last week’s presidential debate showed us a very feeble Biden and resulted in calls from media outlets friendly to him, such as the New York Times, for him to step aside and let someone else take the Democratic nomination for President.

As the weekend unfolded, though, it became clear that his own family and a few close advisors are in charge of him, and they have decided that he is going to stay in the race.

People in his small campaign camp circle have talked to reporters they have deemed friendly to them to lay out their election plan. One story from Axios titled “Biden's salvation plan” lays it all out.

It includes:

)Ignore all media outlets and reporters that are not 100% in support of Biden staying in the race.

)Create more video memes for Instagram, Twitter, and Tiktok to shore up their base.

)Put on a friendly Biden town hall event or media interview later.

)Label any Democrats, and I guess anyone else for that matter, who worry about Biden’s abilities as engaging in “bedwetting.”

The article includes this key line:

“Biden's kitchen cabinet sees a recipe for a narrow victory that includes a grand-slam speech at the Democratic convention in Chicago + a strong showing in the next second debate + positive economic news in the fall (maybe a Fed rate cut).”

So, the Biden campaign wants a Fed rate cut before the election, which means September.

Now we know why the odds shifted from a December to a September rate cut.

Remember, last week I noted that from 1965-1980 the stock market went through multiple cyclical bull markets which would end during Presidential election years and a new bear market would start within weeks or months, in one case nine months, after each Presidential election.

What was happening was that during those years Presidents would pressure the Federal Reserve to lower rates or ignore inflation.

The Biden campaign is going to repeat this history out of desperation.

I have zero interest in trying to pick a top in this market right now, as it probably won’t roll over until after the election, maybe not till next year.

I know that it’s hard not to feel like things could be slipping out of control, headed in a bad direction now. When it comes to the United States is anyone flying the airplane?

Yes, Biden, his family, and a few of his advisors are and they want a rate cut.

For the Fed to do that they will have to start to lay the ground work at their next FOMC meeting at the end of this month. They’d have to make some wild claims about how they have solved inflation, when they have not.

So, we’ll see if that’s what they do in a few weeks.

No “AI” was used to write this email or edit it.