{"id":2233537,"date":"2024-04-30T11:33:02","date_gmt":"2024-04-30T15:33:02","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/investors-now-see-no-interest-rate-cut-before-election-in-major-blow-to-biden\/"},"modified":"2024-04-30T11:35:13","modified_gmt":"2024-04-30T15:35:13","slug":"investors-now-see-no-interest-rate-cut-before-election-in-major-blow-to-biden","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/investors-now-see-no-interest-rate-cut-before-election-in-major-blow-to-biden\/","title":{"rendered":"Investors anticipate no pre-election interest rate cut, dealing a significant blow to Biden"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">26<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Finvestors-now-see-no-interest-rate-cut-before-election-in-major-blow-to-biden%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=2233537&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><p>Investors are now \u200bpredicting that there won&#8217;t be any interest rate cuts before\u200b the November election, impacting President Joe Biden&#8217;s\u200c reelection bid. These expectations contrast with \u200bearlier projections of up \u2063to \u2063six rate cuts by 2024, with uncertainty surrounding the timing of the first cut. The current\u2062 market sentiment is influenced by inflation\u200c trends and political implications for the upcoming election.  <\/p>\n<p class=\"readmore\">\n    <button onclick=\"showReadMore()\" id=\"readmorebtn\">Read more&#8230;<\/button>\n<\/p>\n<hr id=\"line\">\n<span id=\"more\"><\/p>\n<div>\n<p>Investors now peg greater than even odds that there will not be a single <a href=\"https:\/\/www.washingtonexaminer.com\/tag\/interest-rates\" target=\"_blank\" rel=\"noopener\" title>interest rate<\/a> cut until after the November election, a market outlook that complicates President <a href=\"https:\/\/www.washingtonexaminer.com\/tag\/joe-biden\" target=\"_blank\" rel=\"noopener\" title>Joe Biden<\/a>\u2018s reelection bid.<\/p>\n<p>Just four months ago, <a href=\"https:\/\/www.washingtonexaminer.com\/tag\/investment\" target=\"_blank\" rel=\"noopener\" title>investors<\/a> were pricing in up to six interest rate cuts from the <a href=\"https:\/\/www.washingtonexaminer.com\/policy\/finance-and-economy\/2964859\/new-threat-to-biden-rising-odds-of-no-rate-cuts-before-election\/CLICK%20HERE%20TO%20READ%20MORE%20FROM%20THE%20WASHINGTON%20EXAMINER\" target=\"_blank\" rel=\"noopener\" title>Federal Reserve<\/a> in 2024, with most expecting that the first cut would have happened in March. But on Tuesday, as top Fed officials huddle in <a href=\"https:\/\/www.washingtonexaminer.com\/tag\/washington-dc\" target=\"_blank\" rel=\"noopener\" title>Washington, D.C.<\/a>, investors think the Fed will hold off until at least November.<\/p>\n<p>Investors implied a nearly 52% probability that the Fed will hold rates steady during its September meeting and then would cut during its November meeting, which happens just days after one of the most politically charged presidential elections in modern history, according to the CME Group\u2019s FedWatch tool, which calculates the probability using futures contract prices for rates in the <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/powell-set-to-testify-before-congress-heres-what-to-expect\/\" title=\"Powell set to testify before Congress \u2014 here's what to expect\">short-term market targeted<\/a> by the Fed.<\/p>\n<p>Still, some investors are even more hawkish, and there are about 1-in-4 odds that the Fed won\u2019t cut interest rates at all this year. Last week, there was about a 10% probability of no rate cuts in 2024, and a month ago, the odds of that were only 1% \u2014 showing how recent economic data are shaping perceptions.<\/p>\n<p>The higher interest rates are a result of years of too-high inflation. The rate of inflation began to spike in early 2021 and peaked at over 9% in 2022. Since then, it has largely been falling as a result of the higher interest rates. This year, it has proven stickier than anticipated \u2014 not only bad news for the economy and consumers but also bad news politically for Biden.<\/p>\n<p>Inflation, as gauged by the consumer price index, has wobbled between 3% and 3.7% since June 2023 but has not once fallen into the 2%-3% range.<\/p>\n<p>The lack of any interest rate cuts would have some major effects on the election.<\/p>\n<p>Republicans will undoubtedly use the higher interest rates to attack Biden and Democrats and blame them for the situation. Republicans have argued that the reason inflation got so hot is too much federal spending resulting in more dollars chasing the same number of goods and services and causing price hikes.<\/p>\n<p>Democrats, though, have argued that the rise in inflation wasn\u2019t their fault, saying it was driven by major supply constraints during the pandemic and that it hit other countries harder. They also have sought to blame corporations for unfairly raising prices.<\/p>\n<p>But the economy is the No. 1 issue on the minds of voters, so any bad economic news is bad news for the incumbent president. Polls have consistently showed that too-high inflation is undercutting U.S. support for Biden because it, alongside higher interest rates, has made life much more unaffordable for voters.<\/p>\n<p>Interest rate cuts would be seen as a positive for Biden because they would typically help the stock market and general economic investment and bring down rates on other consumer finance instruments, such as car loans and mortgages.<\/p>\n<p>In early February, former President Donald Trump called Fed Chairman Jerome Powell, whom he appointed to the role, \u201cpolitical\u201d and <a href=\"https:\/\/thehill.com\/business\/4444150-trump-blasts-powell-as-political-as-fed-weighs-rate-cuts\/\" target=\"_blank\" rel=\"noopener\" title>predicted<\/a> he would <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/how-to-stop-inflation-from-hurting-americas-working-and-middle-class\/\" title=\"How To Stop Inflation From Hurting America\u2019s Working And Middle Class\">lower interest rates<\/a> ahead of the election. Trump has said he will not reappoint Powell should he win in November.<\/p>\n<p>\u201cIt looks to me like he\u2019s trying to lower interest rates for the sake of maybe getting people elected. I don\u2019t know,\u201d Trump said at the time.<\/p>\n<p>Powell has recently taken a more hawkish approach toward interest rates, given the higher-than-anticipated inflation data.<\/p>\n<p>At an event this month, he emphasized that the hotter-than-desired inflation reports over the past quarter have not provided the Fed the confidence it needs that price pressures are abating. Powell\u2019s remarks are an acknowledgement of a recent major shift in expectations from investors regarding interest rates.<\/p>\n<p><a href=\"https:\/\/www.washingtonexaminer.com\/\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>CLICK HERE TO READ MORE FROM THE WASHINGTON EXAMINER<\/strong><\/a><\/p>\n<p>The central bank\u2019s <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/how-the-government-is-distorting-the-housing-market\/\" title=\"How The Government Is Distorting The Housing Market\">interest rate target<\/a> is 5.25% to 5.50%, a high level it has been at since July.<\/p>\n<p>This week, the Fed is meeting and once again is expected to hold its rate target steady. Powell\u2019s comments following the meeting of the Federal Open Market Committee will be closely watched by investors.<\/p>\n<\/p><\/div>\n<p><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Investors now believe it&#8217;s unlikely for any interest rate cuts to happen before the November election, posing a challenge to President Biden&#8217;s reelection prospects. Previously, there were expectations of up to six rate cuts in 2024 by the Federal Reserve, underscoring the shifting market sentiment<\/p>\n","protected":false},"author":2683,"featured_media":2233538,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/wex-s3.s3.us-east-1.amazonaws.com\/wp-content\/uploads\/2024\/03\/AP24031746433908-1024x683.jpg","fifu_image_alt":"","footnotes":""},"categories":[538],"tags":[],"class_list":["post-2233537","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-washington-examiner"],"fifu_image_url":"https:\/\/wex-s3.s3.us-east-1.amazonaws.com\/wp-content\/uploads\/2024\/03\/AP24031746433908-1024x683.jpg","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2233537","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/2683"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=2233537"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2233537\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2233538"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=2233537"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=2233537"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=2233537"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}