A backlash against the Fed?

THE conventional political wisdom on the eve of the midterm elections has been that the rise of pump prices, aka inflation, remains the top concern of the American voter, and would probably determine the outcome of the races across the country.

Indeed, according to the Pew Research Centre, four-fifths of Americans say that the economy will be “very important” when they vote in the midterms, while three-quarters of likely voters say they are “very concerned” about the rising prices of food and other goods.

Annual inflation is now running over 8 per cent, a 40-year high, and most voters blame the political party in power in the White House and Congress for it, and are therefore expected to punish the Democrats and President Joe Biden on November 8.