Experts: Fed’s decision to continue rate-cutting cycle could hinge on US election result
Experts: Fed’s decision to continue rate-cutting cycle could hinge on US election result . (MENAFN) The Federal Reserve–s decision to continue its rate-cutting cycle could hinge on the outcome of Tuesday–s US presidential elections. Experts believe that if Vice President Kamala Harris ...
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(MENAFN) The Reserve’s decision to continue its rate-cutting cycle could hinge on the outcome of Tuesday’s US presidential elections. Experts believe that if Vice President Kamala Harris wins, the Fed may proceed with further rate cuts, but if former President Donald is victorious, the cycle could be at risk.



Felix Schmidt, a senior economist at Germany's Berenberg Bank, suggested that the Fed might opt for a 25-basis point rate cut on Thursday, two days after the elections. He pointed out that the US has been performing well despite tight monetary policy and persistent inflation, which could lead the Fed to continue cutting rates. However, Schmidt emphasized that the future of the rate cuts could depend on the election results, noting that a potential Trump victory might initially stimulate the economy with tax cuts, but additional tariffs and stricter immigration policies could contribute to higher inflation.



Philip Marey, a senior US strategist at Rabobank, agreed that the Fed could continue with 25-basis point rate cuts in its November, December, and January meetings. However, he indicated that after January, the direction of the Fed’s policy would depend on the presidential election outcome. If Trump wins, Marey expects inflation to rebound, particularly if he implements a universal tariff, which could force the Fed to pause its rate-cutting cycle. In contrast, if Harris wins, the absence of a universal tariff would likely result in lower inflation, making it more likely that the Fed will continue its rate cuts.

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https://menafn.com/1108855549/Experts-Feds-decision-to-continue-rate-cutting-cycle-could-hinge-on-US-election-result
2024-11-06
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(MENAFN) The Federal Reserve–s decision to continue its rate-cutting cycle could hinge on the outcome of Tuesday–s US presidential elections. Experts believe that if Vice President Kamala Harris ...
Experts: Fed’s decision to continue rate-cutting cycle could hinge on US election result