New threat to Biden: Ris­ing odds of no rate cuts before elec­tion

The ris­ing odds that the Fed­er­al Reserve might not cut inter­est rates at all this year has major impli­ca­tions for the com­ing elec­tions, espe­cial­ly in terms of imper­il­ing Pres­i­dent Joe Biden’s quest for a sec­ond term.
Just four months ago, investors were pric­ing in up to six inter­est rate cuts from the Fed in 2024, with most expect­ing that the first cut would have already hap­pened by now. But infla­tion has proved more stub­born than thought, and now the expect­ed tim­ing for those cuts is being dra­mat­i­cal­ly pushed back, with some expect­ing just one small decrease and oth­ers see­ing a pos­si­bil­i­ty that the cen­tral bank will not low­er its tar­get rate at all this year.
Why might there be no rate cuts?
The high­er inter­est rates are a resul …