Trump Says No Federal Rates Cuts Before 2024 Election, Republican Congress Members Say 'The Time Is Right'

If former President Donald Trump has his way, the Federal Reserve will leave rates unchanged ahead of the 2024 presidential election.

That doesn't seem likely with investors and members of Congress anticipating a rate cut next week.

What Happened: Trump recently said that presidents should have "at least a say" when it comes to monetary policy and interest rate decisions by the Federal Reserve.

While Trump could seek to make changes to the Federal Reserve if he is re-elected in the 2024 election, the Fed currently operates independently from the executive branch.

Next week the Federal Reserve will decide whether to cut rates by 25 or 50 basis points on Sept. 17 and Sept. 18 or leave rates unchanged.

Trump argued rates should remain the same before the 2024 election as to not provide any change to the economy and boost the odds of the current Democratic-led White House.

Cutting rates is "something that they know they shouldn't be doing" ahead of the election, Trump previously said.

Republican members of Congress don't agree with the former president, according to a report from Politico.

"It is time for a rate cut," Sen. John Kennedy (R-La.) said. "This economy — particularly the labor market — is softening very, very, very quickly."

The call for rate cuts by members of Congress comes with the recent August inflation report showing the lowest annual rate since February 2021.

"The time is right," Rep. Dan Meuser (R-Penn.) said. "You've got to put the greater good ahead of looking political."

Meuser added that a rate cut could be "a stimulus to the economy."

"It's something that's needed. It's a pro-growth initiative."

Sen. Thom Tillis (R-N.C.), said the Fed should follow its legal mandate and promote prices and employment.

"People could call it political. All I care about is how it's affecting working families. And they need help right now," Tillis said.

Did You Know?

• Congress Is Making Huge Investments. Get Tips On What They Bought And Sold Ahead Of The 2024 Election With Our Easy-to-Use Tool

Why It's Important: Trump stating claims that Federal Reserve actions could hurt him politically is not exactly a new concept.

The former president previously said former Fed Chair Janet Yellen kept rates low in 2016 to provide a boost to the Democratic Party.

While Trump picked Jerome Powell to lead the Fed, he often criticized him during his administration and Powell remains the chair today.

Powell has been adamant that the political party in power has nothing to do with decision-making in Fed cuts or rate raises.

"We never use our tools to support or oppose a political party, a politician, or any political outcome," Powell said in July.

Next week's Fed meeting, where many experts predict a 25 or 50 basis point cut, could quickly turn political if Trump lashes out at the decision.

Read Next:

• Fed Rate Cuts And S&P 500: The ‘Why’ Matters Most, Data Shows

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