![]() ![]() I’m going to look at Gold performance in the ten months leading into the election as well as the two years after, leading into the next general election. In this article, I’m going to examine Gold prices in midterm election years going back to 1978. These relationships aren’t always linear, unfortunately, and there’s often a considerable amount of context around markets going into each election. And given Gold’s role in the global economy, many of these themes will often play out in the world’s most precious of precious metals. Congress, on the other hand, questions the Fed about the massive balance sheet that they’ve built and why they were so slow to raise rates in 2021.Īll of this plays out in the political spectrum which, in-turn, plays out in capital markets. Over the past decade there’s been a tendency for each governmental entity to spill-over to the other, with the Federal Reserve instituting an aggressive policy of easing that has had a much longer half-life than just a year. The bigger picture economic items – the tax cuts (or hikes), the stimulus plans and the infrastructure spending - that’s fiscal policy, and that rests squarely on the shoulders of those elected representatives. Or at least, that was the design as I learned when taking economics classes twenty years ago. The Fed controls monetary policy, which generally speaking, has a short-term focus and a shorter-term impact. Traditionally, the President leads the executive branch of the government and along with Congress, that’s where decisions for fiscal policy are made. Elections are big deals for economies, but the impact might not always be immediately clear. ![]()
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