although the Federal Reserve has been trying to stay away from politics in 2024, the U.S. presidential election on Tuesday is crucial for the Federal Reserve and its chairman, Powell. The next U.S. president will fill multiple vacant positions, and Powell's term as chairman of the Federal Reserve 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 obviously be "very proactive." During his presidency, Trump often attacked Powell and publicly pushed the central bank to do things his way, even suggesting negative interest rates. Trump has even hinted that if he is re-elected, he may do more.

Federal Reserve policy makers will also have the opportunity to discuss these effects this week as the FOMC holds a meeting in Washington, D.C. on Wednesday and Thursday. The officials' main agenda is whether to cut interest rates for the second time in 2024, and the market expects the Federal Reserve to cut rates by 25 basis points this week, but political factors are sure to weigh on their minds. (Jinshi)