Don’t expect rate cuts from the Federal Reserve before the November election, according to David Rubenstein. “Generally the Fed wants to stay out of politics,” the co-founder and co-chairman of The Carlyle Group told CNBC’s Andrew Ross Sorkin on ” Squawk Box ” Monday. “I’ve always said that I think the Fed is not likely to cut rates before the election because it would just cause too much political turmoil.” Rubenstein noted that the Fed likely recognizes it would be “heavily criticized” by former President Donald Trump if it starts cutting ahead of the election. “I suspect the market is probably more right than wrong when it says the rate cuts are likely to come after the election,” he said. Traders are currently pricing in a nearly 78% chance of a cut in November, up from about 66% odds in September, according to CME Group’s FedWatch tool . The central bank’s adjusted dot plot released earlier this month calls for one cut this year, down from three in a March forecast. Rubenstein refrained from endorsing a specific candidate, noting that he does not support anyone publicly. That’s due to his various public positions such as chairman of The Kennedy Center, where he vies for appropriations across the political spectrum, he said. He’s currently registered as an independent after years of being a Democrat, he added.
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