New threat to Biden: Rising odds of no rate cuts before election

The rising odds that the Federal Reserve might not cut interest rates at all this year has major implications for the coming elections, especially in terms of imperiling President Joe Biden’s quest for a second term.

Just four months ago, investors were pricing in up to six interest rate cuts from the Fed in 2024, with most expecting that the first cut would have already happened by now. But inflation has proved more stubborn than thought, and now the expected timing for those cuts is being dramatically pushed back, with some expecting just one small decrease and others seeing a possibility that the central bank will not lower its target rate at all this year.

Why might there be no rate cuts?

The higher interest rates are a result of years of too-high inflation. The rate of inflation began to spike
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