Polls show a close presidential race going into November, and economists are trying to forecast how the Federal Reserve’s interest rate policy might change in coming years under a new president.
Overall, analysts anticipate that the economy will continue to grow under either Democratic candidate Kamala Harris or Republican candidate Donald Trump. However, each presents different economic scenarios depending upon which policies they pursue.
The Federal Reserve is designed to be an independent, nonpartisan organization so that the central bankers can make decisions based on economic best practices rather than political considerations. While Federal Reserve officials don’t advocate for political proposals, they have said they are ready to factor in how fiscal policies will affect the economy.
“We take whatever policies are enacted by the Congress and signed into law by the president as an input into our analysis of the economy,” Minneapolis Fed President Neel Kashkari said at a recent event. “Whether it’s tariffs or it’s taxes or it’s spending, all of …