AP Photo/Alex Brandon, File; AP Photo/Susan Walsh, File
- The Fed won't cut rates until after the 2024 election, Santander's chief economist told Bloomberg.
- That's because inflation is likely to remain stubborn and cutting rates closer to the election date could be controversial.
- "I don't think they want to make newspaper headlines in the heat of the election season."
Rate cuts won't arrive in March, May, or even June this year. Instead, they're going to come after the 2024 election.
That's according to Santander's chief economist Stephen Stanley, who expects only two rate cuts this year, for a total of just 50 basis points.
"The underlying inflation piece is not as good, I think, as the numbers would suggest," he told Bloomberg on Thursday.