What the Markets Are Saying (about Biden)

What the Markets Are Saying (about Biden): Biden’s overspending is a fact, not speculation, and his plan to continue spending at this wildly irresponsible level is also a fact, documented by his words.  It is therefore likely that if Biden is re-elected along with Democrat control of one or both houses of Congress, huge excesses may continue, and inflation might not decline — not without more tightening of the federal funds rate, which now stands at a 23-year high and might (again speculation) rise by another one or two percent or more.  Normally, such rate hikes would cool the economy and bring inflation down, but the Fed would be operating in competition with massive and unprecedented government overspending, and so inflation might be at a stalemate.