The Fed tries to stay above politics. But a lot is at stake for the central bank on Election Day.
Published On Nov 5, 2024, 4:00 AM
The upcoming election is pivotal for the Federal Reserve, as the next president will influence its direction and decision-making. The investment climate could shift significantly depending on whether a more interventionist figure like Donald Trump or a more restrained one like Kamala Harris takes office. Trump has expressed desires for increased influence over the Fed, which may create uncertainty in monetary policy. Meanwhile, Harris emphasizes the importance of Fed independence. A key factor will be the Federal Open Market Committee's (FOMC) decisions on interest rates, which markets expect to be influenced by election outcomes.