Analysis: This US presidential election is crucial for the Fed and its Chairman Powell

Odaily Planet Daily Report: Although the Federal Reserve has been trying to distance itself from politics as much as possible until 2024, the US presidential election on Tuesday is crucial for the Federal Reserve and its chairman Powell. The next US president will fill several vacant positions, and Powell's term as Federal Reserve chairman will end in May 2026. Trump or Harris will be able to choose the next leader of the Federal Reserve. Mark Spindel, chief investment officer of Potomac River Capital and a historian who studies the Federal Reserve and politics, pointed out in a recent interview that this is a "critical juncture for the Federal Reserve." He added that if the Trump team wins, they will clearly be "very proactive." During his presidency, Trump has often attacked Powell and openly pushed the central bank to act according to his wishes, even hinting at negative interest rates, and Trump has hinted that if he wins a second term, he may do more. Federal Reserve policymakers will also have the opportunity to discuss these impacts this week, as the FOMC will be meeting in Washington, DC on Wednesday and Thursday. The main issue for officials is whether to make a second rate cut in 2024, and the market expects the Federal Reserve to cut rates by 25 basis points this week, but political factors will certainly also be on their minds.