Is this true, or is something else going on? It is true stocks have soared to new heights multiple times over the last several months. So, what does President Biden have to do with it? Not much. I like to remind my Facebook friends that if you are going to play the lookie, my president made the stock market be biggly game, you have to give Trump credit for the upward trajectory of stocks during most of his term .
At the time, the Federal Reserve was trying to normalize interest rates after nearly a decade of artificially low rates in the wake of the 2008 financial. The Fed held rates at zero through most of that period. During that time, the trajectory of the Dow was generally upward. As you can see on the graph, the market starts to climb again before the big crash during the pandemic. Why? The Fed cut rates three times that year because the previous hikes had started the process of the next bust cycle.