The Federal Reserve is widely expected to cut interest rates in September, less than two months before the November election.
And ahead of this expected move, Fed Chair Jerome Powell has been facing pressure fromus news lawmakers on both sides of the aisle. Including former President Trump, who said in an interview with Bloomberg last month rate cuts are “something that they know they shouldn’t be doing.”
But in an interview with Yahoo Finance, Nobel Prize-winning economist Paul Krugman said a rate cut in September “shouldn’t matter much” for the election, given the lagged effects policy has on the real economy.
“What the Fed does today shouldn’t affect the real economy for quite a few months, not until well after the election,” Krugman said.
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