Trump is leading in the polls to win the November presidential election, and he has bad news for borrowers.
He said in an interview with Bloomberg that he does not want the Federal Reserve to cut interest rates in September, as is the case now in the market.
Trump wants to keep interest rates high until after the election, not lower them until after the election (which is three and a half months away);
- He says the Fed should refrain from cutting interest rates and giving the economy a boost.
Trump says Fed shouldn’t cut rates, gives Biden a boost.
Added – Want 15% corporate tax.
***
A look at CME’s FedWatch tool shows that markets are pricing in a 90% chance of a rate cut at the FOMC meeting in mid-September. But a September rate cut is off the table if Trump gets his way. That’s something traders should be aware of.
By the way, I doubted this would happen… but I thought I was acting a bit of an idiot. But it seems not!
