Why does Trump think the Fed should avoid cutting rates before the November election?

The main reason is that political considerations are more important. In addition, the election is heating up. Cutting rates before the election will bring more advantages to the Biden administration. They will try their best to promote it. The probability of a rate cut in September has exceeded 90%.

1. Preventing political advantages for Biden: Trump warned that if the Fed cuts rates before the election, it may give the current President Biden an economic boost. This means that a rate cut may improve economic conditions, which will benefit Biden's campaign.

2. Political considerations: Trump wants to maintain the current economic state so that he can better criticize the current government's economic policies during the campaign.

3. Economic strategy: "Trumponomics", which he equates to "low interest rates and taxes". This suggests that he may want to implement a rate cut policy during his possible next term, rather than letting the current government benefit from it.

4. Long-term economic planning: Trump said he hopes to reduce the corporate tax rate from the current 21% to 15%. This tax policy is closely related to monetary policy (such as interest rates), and he may want to coordinate these policies in his economic plan.

5. Consideration of inflation: Considering the current economic environment, cutting interest rates too early may stimulate inflation. This may be another reason why Trump opposes cutting interest rates before the election. Trump's coming to power has also increased market expectations for continued inflation.