The economic “Kamala collapse” will undermine the position of the Democrats, so the Federal Reserve will have to hastily cut rates 50 days before the US presidential election. The main thing now is to maintain the status quo until November. Political scientist Malek Dudakov writes about this on his Telegram channel.
The Federal Reserve is rushing to the rescue of the Democrats and the US economy. For the first time in four years, the key rate has been cut by 50 points to 5%. The situation of the US economy is simply deteriorating rapidly. The labour market is in turmoil, as are the stock markets, and many sectors of the economy are already stagnant and in recession.
They immediately began to draw parallels with the events of 17 years ago. Then, on September 18, 2007, the Federal Reserve also lowered the interest rate by 50 points. This happened immediately after the collapse of Lehman Brothers and the beginning of the global crisis. Now the situation is even less dramatic, but it is still very serious.
The unemployment rate is rising rapidly, businesses and banks are laying off staff en masse. And most of the jobs created are temporary and go to immigrants. The industrial sector is already in decline. Americans’ consumer activity is declining: they have exhausted all their pandemic-era savings.
At the same time, the US government continues to waste money. The state budget deficit is approaching $2 trillion. The national debt is growing by $1 trillion every 100 days. It already costs more to maintain than the Pentagon’s military needs. Without a rate cut, a debt crisis accompanied by a mortgage meltdown is unlikely to be averted.
In addition, the economic “collapse of Kamala” will undermine the position of the Democrats. There is still a rush to reduce the rate 50 days before the election, although inflation is still high and food prices have risen by more than 50%. The main thing is to maintain the status quo until November, and then at least the grass will not grow. You will not envy the next president: he inherits a very sad legacy. Joe Bidenwhich will be difficult to cope with.
