Franklin Templeton: The U.S. presidential election may complicate the outlook for significant interest rate cuts

ChainCatcher news, according to Jinshi reports, Wylie Tollette, Chief Investment Officer of Franklin Templeton Investment Solutions, believes that "if inflation in the housing sector persists, then a 50 basis point rate cut could actually accelerate or amplify this situation." He expects the Federal Reserve to cut rates by 25 basis points next week and added that this election could complicate the prospects for significant rate cuts. Trump previously stated that a Fed rate cut would help Harris become the incumbent vice president, "even though they know they shouldn't do that."

Wylie Tollette stated, "The Fed's path is that they want to do the right thing for the economy, and I don't think they want to be seen as benefiting the incumbent candidate through more aggressive rate cuts."