Are Economic Indicators Foreshadowing an Obama Win?

U.S. economy shows signs of life, improving Obama’s chances.

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Brian Domitrovic, a professor of economic history at Sam Houston State University in Texas, says recent actions by the Federal Reserve are also buoying the stock market and improving the president's chances. Fed chairman Ben Bernanke recently announced another round of quantitative easing, a process that allows the central bank to inject more cash into the economy when other stimulus fails. This also keeps mortgage rates at historic lows, granting more people access to the housing market.

[See Is Fed Money Fake? Investors Make It Real.]

"What we have with quantitative easing is $40 billion per month that is going to buy mortgages," Domitrovic says. "Any time you free up that amount of cash, it gets invested in a variety of asset classes," strengthening the stock market. 

The Federal Reserve has completed two rounds of quantitative easing, and Bernanke hinted this week that another round could take place before the election. Domitrovic says that would further boost the economy and improve Obama's election chances.

However, the move could also be political, according to Domitrovic. "Mitt Romney has said we will not reappoint Bernanke," he says. 

So if Romney wins, Bernanke will be looking for a new job.