With signs that inflation is being tamed, Republicans could be playing defence

IT HAS been stated many times, and needs to be said again: The United States president isn’t responsible for the condition of the overall American economy, in bad times and in good times. Yep! We’ve just let you in on a secret: Presidents have less power over the economy than you think.

To adapt that Clinton-era slogan, “It’s the business cycle, stupid!” that explains the expansion and contraction that any economy experiences over time – and the economy under any president depends more on where the country is on the business or economic cycle, and less on his or her specific economic policies.

Yes, fiscal policies affect the economy, but these are determined by Congress. Presidents can have some impact on the economy by the way they respond to crises and external shocks. But perhaps the most important decision that a president makes in this context is appointing the Federal Reserve’s chairman and governors, who have a huge impact on the economy through their monetary policies.