They know it’s BS. But they painted themselves into a corner by taking the interest rate down to the ZIRP. After that, there was nowhere to go but up, which would crush the economy.
That’s why they talked about it for over a year and then, when they finally did “raise the rates,” it was nothing.
If they really believed the recession were over, they’d take the rates back up to 3% over the course of a 12-24 months.
They wouldn’t let the economy crash with the “first black president,” and they didn’t want it to crash with a president that everyone compares to Carter, who was president the last time the economy tanked.
So they’ve been propping it up.
I don’t doubt they’ll let Trump win and then let the economy tank and the dollar crash. That way, they can say, “See! See! We told ya so! We socialists give you a stable economy. But you went and voted for an old white capitalist businessman and look what he did. Now, if you want this mess fixed, vote us back into office. But we have to warn you, we’ll have to switch to a global currency and the IMF/BIS will have a strong voice in our economy.”
Somehow they don’t equate twisting the truth with lying. The biggest victim in all this will be trust.