re: Trump vs Obama on the economy

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What the Fed did during Obama's eight years in office was unprecedented. They kept their foot on the gas with the discount rate around zero and then three rounds of quantitative easing. Without that, Obama's average GDP of 1.8% per year would have been a lot worse IMO.

I thought it was telling as soon as Trump got in office the Fed started raising rates. In the face of the Fed raising rates during his first couple of years, I thought the Trump economy performed well without all the advantages Obama received.

fed funds rate chart

Now because of Covid, the Fed is back to supplying a lot of stimulus with low rates and QE.

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