President Joe Biden delivers remarks on the CHIPS and Science Act at the Milton J. Rubenstein Museum, April 25, 2024, in Syracuse, N.Y.Since then, however, the sunny outlook has darkened. Inflation has proven stubborn and output has slowed. Perhaps most notably, the Fed has cast doubt over whether rate cuts will arrive after all.
"The only unknown there is the timeline," Grossman added, referring to delayed interest rate cuts. “It might be too late now to have a big effect on economic performance.”When reached for comment, the Biden campaign directed ABC News to a former member of the Council of Economic Advisers.its benchmark interest rate steady for the sixth consecutive time.
The delayed interest rate cuts mark a blow to the Biden campaign, since the Fed’s posture illustrates the need for a continued fight against inflation, Steve Boms, founder and president of D.C.-based consulting firm Allon Advocacy."If you’re on the Biden campaign, you’re hoping that the rate cuts come as soon as possible because voters tend to vote based on their pocketbooks," Boms said.
Still, he added, the interest rate cuts would send an important signal that the administration has brought inflation under control.