"Fed may keep interest rates steady due to US elections"

The Fed is increasingly likely to hold interest rates steady as the election race heats up, said Hooman Kaveh, chief investment officer at Mercer LLC. The Fed is increasingly likely to hold interest rates steady through the end of the year rather than wade into the increasingly heated U.S. election race, according to Hooman Kaveh. “If you were the Fed governor, it would be more tempting to say, ‘Let’s stay where we are, let’s wait until after the presidential election,’” Kaveh said in an interview with Bloomberg Television. Kaveh said he still expects two U.S. rate cuts before the end of the year. But he said that scenario could change with President Joe Biden dropping out of the race and Republican nominee Donald Trump likely to face new challenger Kamala Harris. In an interview with Bloomberg last month, Trump said he would allow Jerome Powell to finish his term as Fed chair through May 2026 if he is re-elected.