Why the 2024 Election is Unlikely to Impact Lending Rates

Federal Reserve Does Not React to Politics

• Historically, The Fed has both raised and lowered the overnight rate leading up to elections.

• Data suggests interest rates will move independently of the election year.

No Signs Of Political Bias Either

• The Federal Reserve has not favored one party over another when making rate determinations.

• The 10-year treasury yield also behaves independent of election cycles.

When Could Rates Go Down?

• Before 2000, interest rates were typically even higher than the are now, suggesting we are close to what many long-time investors consider normal.

• The market will likely adjust to the interest rate environment before we see substantial rate cuts.