Bushs Relationship with Fed Not Like Dads

Summary


WASHINGTON - Going against conventional wisdom, the Federal Reserve is raising interest rates in an election year. And it is Fed Chairman Alan Greenspan, a Republican, who is leading the charge even though an incumbent Republican in the White House is facing voter unrest about the state of the economy.

And in what is seemingly the strangest twist of all, President Bush and his economic team are not criticizing the moves, but rather are pointing to the rate hikes as a sign of economic strength. To demonstrate support for Greenspan, Bush renominated him for a fifth term just shortly before the rate increases began in June.

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Bushs Relationship with Fed Not Like Dads

So what's going on?

Many economists believe the younger Bush, mindful of his father's rocky relations with Greenspan, has gone out of his way to establish a cordial working relatio...

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