Just an interesting thing to note for the 2018 elections.
The so-called neutral U.S. interest rate fell in the final 3 months of 2016 https://t.co/GAiV7vqbuT pic.twitter.com/LqQP1Lq0NT
— Bloomberg (@business) April 24, 2017
The Federal Reserve is in a tightening cycle (for what reason, I’m not sure as the data does not support a need to tighten). If the short term interest rates are above neutral, that means the economy will be worse than it otherwise would have been. A bad economy is bad for incumbent parties that hold all responsibility (see 2010 for Democrats).
So