Franklin Templeton: U.S. presidential election could complicate prospects for big rate cuts

Odaily News Wylie Tollette, chief investment officer at Franklin Templeton Investment Solutions, believes that "if inflation in the housing sector remains, then a 50 basis point rate cut may actually accelerate or amplify that situation," and he expects the Fed to cut interest rates by 25 basis points next week, adding that the election may also complicate the prospect of a large rate cut. Trump has previously said that the Fed's rate cuts will help Harris become the current vice president, "even though they know they shouldn't do that." Wylie Tollette said: "The Fed's path is that they want to do what is right for the economy, and I don't think they want to be seen as favoring the incumbent candidate through more aggressive rate cuts." (Jin Shi)