It is clear that Janet Yellen is holding her tongue on raising interest rates, and the Federal Reserve is effectively propping up the stock market in the meantime.
The maneuver will only delay the inevitable, but perhaps that is exactly what the powers that be want.
If Donald Trump is right, the Fed is only holding off on rates in order to spare President Obama the stain of another financial crisis during his time in the Oval Office, stalling only to dump a recession-slash-depression on the next president.
Trump has made this idea a center of his recent talking points. According to HNGN:
Republican presidential contender Donald Trump has once again accused the Federal Reserve of keeping interest rates low at the behest of President Barack Obama, who Trump says wants to avoid an economic depression during his administration.
Yellen is “keeping the economy going, barely,” Trump told The Hill. “The reason they’re keeping the interest rate down is Obama doesn’t want to have a recession-slash-depression during his administration.”
“They are not raising them because Obama has asked them not to raise them,” Trump told Reuters. “He wants to get out of office, because we’re in a bubble, and when those rates are raised, a lot of bad things are going to happen.”
He added: “Janet Yellen is highly political and she’s not raising rates for a very specific reason: because Obama told her not to because he wants to be out playing golf in a year from now and he wants to be doing other things and he doesn’t want to see a big bubble burst during his administration.”
The comments have – in true Trump style – stirred controversy, with even Janet Yellen responding (indirectly) to the politics of controversy:
US Federal Reserve chief Janet Yellen has one very good reason for raising US interest rates next month: politics.
Although central bankers are supposed to be above base political considerations, few would blame Yellen for wanting to shield herself and the US central bank from attack as the 2016 US presidential race picks up pace.
[…]
To avoid such allegations, Yellen appears to be carefully grooming investors to expect an interest rate rise when the Federal Open Markets Committee meets on December 15-16. At a congressional hearing overnight, she noted that a December rate rise was a “live possibility”.
http://www.shtfplan.com/headline-news/trump-accuses-fed-of-not-raising-rates-because-obama-doesnt-want-a-bubble-burst-until-he-leaves_11052015
: First, digest this article...
: The next president is not being determined by voters, but by
: the elite.
: More specifically, it has been the economic data that has
: swung more than a few of the 20th Century elections, with
: good times solidifying the incumbent, and bad times
: ushering in a new face.
: Right now, the way this economic data is handled and presented
: is being largely determined by the Federal Reserve and
: central bank action in general. The market has signaled for
: a policy change, but that change has been forestalled in
: order to keep up appearances.
: As Michael Covel explains, Trump’s recent surge in the polls
: makes a Fed rate hike even less likely – especially because
: it could help him win, and the powers-that-be do not want
: that: The odds of a Trump presidency shot higher this week.
: And that means the odds of a Fed interest rate hike before
: Election Day got lower…
: The fix is in… […] more:
: http://www.shtfplan.com/headline-news/janet-yellen-is-choosing-the-president-rate-hike-would-give-trump-the-white-house_09072016
: ___________________________________________
: Now, consider: The Wall Street barons all know that a rate
: hike is inevitable in the near future, no matter who
: becomes president. The little guy just shuffles merrily
: along with his head up his you know where, oblivious to the
: coming economic mayhem.
: Should the FED raise rates before the election, the event will
: within a month be felt by the little guy, to the disdain of
: the Democrats.
: On the other hand NOT raising the rates can not especially
: help the Dems, because the idea has been bantied about a
: LOT, lately, and all Elite KNOW it's coming before spring
: 2017, either way.
: They are preparing for it. They are also preparing for mass
: revolt among the little guys, as is evident in the news
: coming from even the government itself... that warning to
: store water and food, for example.
: Yeah, it's coming and they are trying their best to insure it
: happens with minimum personal and financial impact to
: themselves.
: As usual, we will be the last to know.
: No, it will not be an EMP. Nor a Nuke, a Solar storm nor
: invasion.
: It will be a pus eruption of the festering, putrid hemorrhoid
: known as GREED. The insatiable love of 'money' that has
: infected mankind since the first neanderthal built his
: personal collection of shells, bones and flints.