This is an update of a Political Calculations chart I’ve run before. In short, it suggests the Fed’s QE bond buying program prevented tax-hike driven austerity from causing a 2013 recession. So a little something to please and bug everyone in there.
Some of the right will hate it because it shows the Fed giving the economy a boost. Then again, it does show tax hikes rather than sequester spending cuts are why the economy didn’t do better this past year.
For folks on the left, the chart comes down in favor of more Yellenanke Fed monetary stimulus and against fiscal austerity.