There is speculation about whether the Federal Reserve will raise interest rates by 25 basis points or 50 basis points. However, I believe that they should not raise rates. The U.S. economy is showing strength, with consistent GDP growth over the past several quarters. The government’s significant spending is fueling rapid economic growth, which may benefit Kamala Harris and her running mate in the upcoming election.
With inflation already above target levels, cutting rates would be a mistake. Continuing to lower rates could lead to even higher inflation in the fourth quarter. If the Fed responds to market instability by further cutting rates, it could exacerbate the issue rather than solving it.
It is crucial for the Federal Reserve to carefully consider the impact of their decisions on the economy and inflation levels before making any changes to interest rates.
