Financial Times UK: If Harris wins the election, the Federal Reserve may quickly cut interest rates next year

The Financial Times team in the UK has recently updated its forecast for the outlook of the Federal Reserve's interest rates, predicting that if Harris wins the election, the Fed may quickly cut interest rates next year. Analysis suggests that after a 50 basis point rate cut in September, the Fed may further reduce rates twice at a pace of 25 basis points in 2024.

By the end of this year, The Federal Reserve will have reduced interest rates by a total of 100 basis points, bringing down fund rates to between 4.25-4.5%. This is consistent with The Federal Reserve's economic forecast summary from September.

If Harris wins in US presidential elections, The Federal Reserve will lower interest rates three more times during first half of 2025; each time by 25 basis points and reducing policy rate to between 3.5-3.75%.