The Fed Is Political. Stop Pretending Otherwise.

Pento Portfolio Strategies LLC · Oct 29, 2026

October 29, 2026

Is the Fed a political institution? The answer is a resounding yes. And if you needed proof, the FOMC just delivered it, gift-wrapped, a few days before the mid-term elections.

Let’s review the record. In September, the Fed hiked the overnight rate by 25 basis points after learning that inflation was running at 3.4% y/y. It wasn’t brave, and it wasn’t nearly enough, but at least it pointed in the right direction. Then the CPI report landed in October: 3.7% y/y. Inflation didn’t cool off. It accelerated.

So, what should a central bank that claims to…