Jobbing the election

Janet Yellen’s Federal reserve stood pat on rates after a two-day meeting on Wednesday.

The “do-nothing” meeting since it was too close to the election had one peculiar aspect.

The prior meeting had three governors dissenting — suggesting they wanted to hike rates then.

The committee voted 8-2 to hold rates steady. Kansas City Fed President Esther George and Cleveland Fed President Loretta Mester dissented, saying they would have preferred to raise the fed-funds rate by a quarter percentage point.

Boston Federal Reserve President Eric Rosengren changed his September vote suggesting that he may see weakness in the economy and is not as hawkish as he once was.

Friday we get the employment report for October. Call me cynical, but I believe we will see a much stronger number than September’s 156K.

This number will be for the Democrats to pump the last few days of the election. It will then quietly be revised down next month.

So let’s say it comes in on Friday at 192K — a marked improvement over the 156K — and then in December is revised to 123K?

Is that election rigging? Is it the last October Surprise? Yes on both counts, but will go unnoticed by most.

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