Inflation will be allowed to run hot as we get closer to the 2024 Presidential election. The reason the Federal Reserve will slowdown and pause rate hikes is because of pressure from democrats.

If you are wondering why the Fed would pause rate hikes while admitting that inflation is not coming down fast enough, politics may be the answer.

To get inflation down to 2%, the Federal Reserve would have to push unemployment a lot higher so as to drastically lower wage growth. A surge in unemployment would make it much harder for democrats to get re-elected. So we’re going to end up with higher levels of inflation than what the Federal Reserve wants.

If multinational corporations deem that the economic cycle will make it virtually impossible for Biden and democrats to get re-elected, we could see them put support behind a rino-republican. That rino-republican would have to support their narratives of transgenderism, the Ukraine war, and climate change. 

In any event, the ultimate outcome is likely that we end up with higher inflation for a longer period than most people expect.