The U.S. Federal Reserve looks on track to cut interest rates as the presidential campaign season heats up, potentially delivering President Joe Biden a boost as polls show Americans dislike his handling of the economy.
The Fed could play an outsized – and potentially uncomfortable – election-year role by helping shape attitudes about stubbornly high inflation and mounting housing costs that have been a drag on Biden’s reelection efforts. Rate cuts will also invite critics – Republican challenger Donald Trump chief among them – to argue an agency set up to be an independent monetary authority is tipping the political scales toward Biden.
Indeed, Trump is not even waiting for the first rate cut to happen before making that claim, telling Fox Business last month he expects Fed Chair Jerome Powell – whom Trump installed as central bank chief in 2018 and…
