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

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