Election Impact: Fed’s Rate Cut Timing Amid Political Pressures, Says Carlyle’s Rubenstein

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David Rubenstein, co-founder and co-chairman of The Carlyle Group, expressed his skepticism about the Federal Reserve cutting interest rates before the November election. In an interview on CNBC's "Squawk Box," Rubenstein stated, "Generally, the Fed wants to stay out of politics." He believes that any rate cuts before the election would create significant political turmoil and lead to heavy criticism from former President Donald Trump.

Rubenstein noted that the market is currently pricing in a nearly 78% chance of a rate cut in November, up from 66% in September, according to CME Group's FedWatch tool. The Federal Reserve's adjusted dot plot released earlier this month forecasts one rate cut this year, down from three in a March forecast.

Rubenstein, who refrains from publicly endorsing any political candidates due to his various public positions, including chairman of The Kennedy Center, emphasized that the Fed is likely to wait until after the election to make any significant changes to interest rates.

Original Article: https://www.cnbc.com/2024/06/24/david-rubenstein-says-fed-not-likely-to-cut-rates-before-the-election.html