Federal Reserve expected to cut rates, lift Biden's prospects

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The U.S. Federal Reserve is expected to cut interest rates, potentially boosting President Biden's prospects in the upcoming election. Rate cuts could help shape attitudes about high inflation and housing costs, which have been a drag on Biden's reelection efforts. The cuts may invite criticism from Republican challenger Trump, who has accused the Fed of tipping the political scales toward Biden. Americans rank the economy as a top election-year issue, and rate cuts could build confidence in the economy and influence voter perceptions. The Fed is projected to cut rates at two of the four meetings before the election, potentially leading to lower mortgage rates and cheaper financing terms. However, some experts are skeptical that the rate cuts will have a significant political impact. Biden has received poor ratings for his handling of the economy, and rising costs have negatively affected Americans' attitudes. The Fed's rate hikes in 2022 and 2023 brought inflation under control without causing a recession, and rate cuts would be seen as a triumph for the central bank. Biden has mentioned the Fed's decisions in his campaign speeches, but the White House clarified that he was offering his view of the economy, not making recommendations to the independent Fed. Republicans have used the Fed's rate hikes to criticize Biden's management of the economy, while Trump has blamed Biden for inflation and accused the Fed of political bias. The Fed's actions will likely face criticism from both sides, regardless of the outcome.

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https://www.yahoo.com/news/federal-expected-cut-rates-lift-101221165.html