Franklin Templeton: U.S. presidential election could complicate prospects for big rate cuts
Wylie Tollette, chief investment officer at Franklin Templeton Investment Solutions, believes that "if inflation in the housing sector remains, a 50 basis point rate cut could actually accelerate or amplify that," and he expects the Fed to cut rates by 25 basis points next week, adding that the election could also complicate prospects for big rate cuts. Trump previously said that the Fed's rate cuts would help Harris as the current vice president, "even though they know they shouldn't do that."
Wylie Tollette said: "The Fed's path is that they want to do what's right for the economy, and I don't think they want to be seen as favoring the incumbent candidate with more aggressive rate cuts."
