Franklin Templeton: US Presidential Election Could Complicate Prospects for Significant Rate Cuts

‘If inflation in the housing sector remains, then a 50 basis point rate cut could actually accelerate or amplify that,’ according to Wylie Tollette, chief investment officer at Franklin Templeton Investment Solutions, who expects the Fed to cut rates by 25 basis points next week, adding that the election could also complicate the complicate the prospects for a significant rate cut. Trump has previously said that a Fed rate cut would help Harris become the incumbent vice president ‘even though they know they're not supposed to 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 favouring the incumbent candidate by cutting rates more aggressively.’