Right now we are all focusing on the midterm campaign that is well underway. But at the same time economists are looking at 2020, and whether or not the Federal Reserve could play a role in President Trump’s re-election campaign.
The concern is that the Fed may raise interest rates too high, which could cause the economy to go into a tailspin. Economist Ray Perryman told KTRH it's a valid concern.
“Politicians do better in a good economy. To some extent the Federal Reserve will play a role in what the economy looks like. But I think that will be a minimal role, frankly,” Perryman said.
Private wealth advisor Derrick Kinney tells KTRH the Fed isn't going to do anything that will stop the growth we've seen since Trump became President.
“What the market wants in consistency. One thing we know is that uncertainty leads to volatility. The last thing a new Fed chairperson wants is people second guessing his or her policies,” Kinney explained.
In other words if we see interest rates go up, expect the Feds to play it safe and make those rate hikes small.