Fed faces tricky balancing act in 2024 with potential election year rate cuts
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The Fed is expected to cut interest rates multiple times in 2024 as inflation comes down, even as it's an election year when Fed policy often draws political attention.
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Former President Trump and President Biden have already hinted interest rates and mortgages will be campaign issues.
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Higher prices and rates are weighing on voter sentiment, making the Fed a likely political talking point.
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The Fed fiercely protects its independence, but optics could get uncomfortable if it cuts rates close to the November election.
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Clear communication of policy decisions will be key for the Fed to avoid the appearance of political motivation if it lowers rates.