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    Shipping boss says ongoing Red Sea disruption could have ‘significant consequences’ for global growth

    Maersk CEO Vincent Clerc said it was unclear whether Red Sea trade would resume in “days, weeks or months,” and that there could be “significant consequences” for global growth.
    Maersk and other shipping giants are diverting vessels away from the Red Sea and around the south of Africa, adding to journey times and driving up freight rates.

    Ongoing disruption to trade flows through the Red Sea could hit global economic growth, the head of one of the world’s largest container shipping firms said Thursday.
    Maersk CEO Vincent Clerc said it remained unclear whether passage through the waterway would be re-established in “days, weeks or months,” in comments first provided to the Financial Times and confirmed to CNBC.

    “It could potentially have quite significant consequences on global growth,” Clerc said.
    The company announced Friday its vessels would be diverted from the Red Sea — which provides access to Egypt’s Suez Canal, the quickest route between Europe and Asia — for the “foreseeable future.”
    Vessels are instead traveling around the southern coast of Africa, which can add between two to four weeks to a Europe-Asia voyage, Clerc previously told CNBC.

    Arrows pointing outwards

    Maersk further said this week that some inland transportations were facing delays due to a wave of strikes in Germany.
    The seaborne diversions by Maersk and a host of other firms are due to a series of attacks on ships by Houthi militants from Yemen. The group’s leaders say they are responding to Israel’s bombing of Gaza.

    Clashes have continued into the new year despite the launch of a U.S.-led military taskforce which has seen major powers send warships to the area.
    Houthi militants this week launched the largest attack of the campaign so far.

    Companies including Sweden’s Ikea have warned of potential product delays as a result, while freight rates are moving higher.
    In a further sign of volatility in the region, an oil tanker was hijacked near the Gulf of Oman on Thursday.
    The World Bank meanwhile said Tuesday that global growth is set to mark its worst half decade for 30 years.
    Ayhan Kose, the group’s deputy chief economist, told CNBC that the world economy faced a host of risks, including escalations of conflict in the Middle East or the war in Ukraine.
    — Additional reporting by Ruxandra Iordache More

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    As Utility Bills Rise, Low-Income Americans Struggle for Access to Clean Energy

    The Biden administration has deployed various programs to try to increase access to clean energy. But systems that could help lower bills are still out of reach for many low-income households.Cindy Camp is one of many Americans facing rising utility costs. Ms. Camp, who lives in Baltimore with three family members, said her gas and electric bills kept “going up and up” — reaching as high as $900 a month. Her family has tried to use less hot water by doing fewer loads of laundry, and she now eats more fast food to save on grocery bills.Ms. Camp would like to save money on energy bills by transitioning to more energy-efficient appliances like a heat pump and solar panels. But she simply cannot afford it.“It’s a struggle for me to even maintain food,” Ms. Camp said.Power bills have been rising nationwide, and in Baltimore, electricity rates have increased almost 30 percent over the last decade, according to data from the Bureau of Labor Statistics. While clean energy systems and more efficient appliances could help low-income households mitigate some of those increases, many face barriers trying to gain access to those products.Low-income households have been slower to adopt clean energy because they often lack sufficient savings or have low credit scores, which can impede their ability to finance projects. Some have also found it difficult to navigate federal and state programs that would make installations more affordable, and many are renters who cannot make upgrades themselves.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber?  More

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    Turkish lira hits fresh record low against the U.S. dollar

    The beleaguered lira has fallen some 37% against the U.S. benchmark over the past year, as monetary policymakers try to combat double-digit inflation by steadily raising interest rates.
    Inflation in Turkey rose to 64.8% on an annual basis in December, up from 62% in November.
    A new finance team was appointed in June last year, and Turkey’s central bank embarked on a sharp pivot, pulling rates higher under new governor Hafize Gaye Erkan.

    Vanishing Turkish Currency: 1 Turkish Lira with the Portrait of Kemal AtatürkTurkish
    Manuel Augusto Moreno | Moment | Getty Images

    The Turkish lira hit a fresh record low against the U.S. dollar on Thursday, trading at 30.005 to the greenback just before noon local time.
    It marks the first time that the lira has broken 30 against the dollar, which was up 0.17% against the Turkish currency from the previous day’s session.

    The beleaguered lira has fallen some 37% against the U.S. benchmark over the past year, as monetary policymakers try to combat double-digit inflation by steadily raising interest rates.
    The more conventional approach follows several years of unorthodox policy during which Ankara refused to tighten rates despite ballooning inflation, while Turkish President Recep Tayyip Erdogan routinely called interest rate rises “the mother of all evil.”
    Inflation in the country of roughly 84 million rose to 64.8% on an annual basis in December, up from 62% in November. It’s still an improvement on the prior year, after Turkish inflation hit a peak of 85.5% in October 2022.
    The lira’s weakening comes as Turkey’s top finance officials gather at J.P. Morgan’s Wall Street headquarters in New York for investor presentations focused on the country’s monetary policy, banking, assets, and financial markets.

    Dubbed “Investor Day,” the inaugural event will feature question-and-answer sessions and will include presentations from new Turkish central bank governor Hafize Gaye Erkan, who was appointed in June 2023, on a range of topics, such as the country’s disinflation path. Turkish Finance Minister Mehmet Simsek will deliver presentations virtually on the outlooks for Turkish financing and fiscal policy.

    Turkish outlet Daily Sabah reports the event will be attended by more than 200 senior executives from major finance institutions, including Vanguard, BlackRock, Goldman Sachs, Morgan Stanley, and J.P. Morgan.
    The Turkish lira has lost more that 80% of its value against the dollar over the last five years, increasing import and foreign debt costs and dramatically weakening the purchasing power of ordinary Turkish people.
    A new finance team was appointed in June last year, and Turkey’s central bank embarked on a sharp pivot, pulling rates higher under Erkan’s supervision. The country’s benchmark interest rate has since been lifted from 8.5% to 42.5%. More

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    Thursday’s inflation report could challenge the market outlook for big Fed rate cuts

    The consumer price index is projected to have risen 0.2% in the final month of 2023, or 3.2% for the full year.
    There is a wide gap between what the Fed has indicated in terms of rate cuts and what the market is expecting.
    The Fed’s central mission now is calibrating policy in a way that it doesn’t ease too much and allow inflation to return or hold policy too tight so that it causes a long-anticipated recession.

    Consumers shop at a retail chain store in Rosemead, California, on Dec. 12, 2023.
    Frederic J. Brown | AFP | Getty Images

    Economists expect that inflation nudged higher in December, a trend that could call into question the market’s eager anticipation that the Federal Reserve will slash interest rates this year.
    The consumer price index, a widely followed measure of the costs folks pay for a wide range of goods and services, is projected to have risen 0.2% in the final month of 2023, or 3.2% for the full year, according to Dow Jones.

    At a time when the Fed is fighting inflation through tight monetary policy including elevated rates, news that prices are holding at high levels could be enough to disrupt already-fragile markets.
    “The Fed did its policy pivot, and the data’s got to support that pivot,” said Jack McIntyre, portfolio manager at Brandywine Global Investment Management. “The market seems to have gotten excited that the Fed’s going to have to do more than what the Fed thinks in terms of rate cuts now. … The market got ahead of itself.”
    There is certainly a wide gap between what the Fed has indicated in terms of rate cuts and what the market is expecting.
    After months of insisting that easier monetary policy is still a ways off, central bank policymakers in December penciled in three quarter-percentage-point rate cuts by the end of 2024, effectively a policy pivot for this inflation-fighting era. Minutes from that meeting released last week did not indicate any discussion about a timetable for the reductions.
    Markets hold a different view.

    Looking for easing

    Traders in the fed funds futures market are pointing to a strong chance of an initial rate cut in March, to be followed by five more reductions through the year that would take the benchmark overnight borrowing rate down to a range of 3.75% to 4%, according to the CME Group’s FedWatch gauge.
    If inflation data such as Thursday morning’s CPI release and Friday’s producer price index don’t show stronger inflation progress, that is liable to cause more volatility in a year when stocks have already gotten off to a rocky start.
    “We’re going to see it across all markets, because it’s going to be that dynamic between what the Fed’s doing and what the market expects them to do,” McIntyre said of a likely volatile time ahead. “Ultimately, they’ve got to come together. It probably means that right now, the market needs to give back some of the rate cuts that they priced in.”

    A smattering of public statements since the December meeting of the Federal Open Market Committee provided little indication that officials are ready to let down their guard.
    Fed Governor Michelle Bowman said this week that while she expects rate hikes could be done, she doesn’t see the case yet for cuts. Likewise, Dallas Fed President Lorie Logan, in more pointed remarks directed at inflation, said Saturday that the easing in financial conditions, such as 2023’s powerful stock market rally and a late-year slide in Treasury yields, raise the specter that inflation could see a resurgence.
    “If we don’t maintain sufficiently tight financial conditions, there is a risk that inflation will pick back up and reverse the progress we’ve made,” Logan said. “In light of the easing in financial conditions in recent months, we shouldn’t take the possibility of another rate increase off the table just yet.”

    The search for balance

    Logan, however, did concede that it could be time to think about slowing the pace of the Fed’s balance sheet reduction. The process, nicknamed “quantitative tightening,” involves allowing proceeds from maturing bonds to roll off without reinvesting them, and has cut the central bank’s holdings by more than $1.2 trillion since June 2022.
    The Fed’s central mission now is calibrating policy in a way that it doesn’t ease too much and allow inflation to return or hold policy too tight so that it causes a long-anticipated recession.
    “Policy is too restrictive given where inflation is and likely where it’s going,” said Joseph Brusuelas, chief economist at tax consultancy RSM. “The Fed is clearly positioning itself to put a floor under the economy as we head into the second half of the year with rate cuts, and create the conditions for reacceleration of the economy later this year or next year.”
    Still, Brusuelas thinks the market is too aggressive in pricing in six rate cuts. Instead, he expects maybe four moves as part of a gradual normalization process involving both rates and the rollback of the balance sheet reduction.
    As for the inflation reports, Brusuelas said the results likely will be nuanced, with some gradual moves in the headline numbers and likely more focus on internal data, such as shelter costs and the prices for used vehicles. Also, core inflation, which excludes volatile food and energy prices, is expected to increase 0.3% on the month, equating to a 3.8% rate compared to a year ago, which would be the first sub-4% reading since May 2021.
    “We’re going to have a vigorous market debate on whether we’re going back to 2% on a durable basis,” Brusuelas said. “They’ll need to see that improvement in order to set the predicate for modifying QT.”
    Former Fed Vice Chair Richard Clarida said policymakers are more likely to take a cautious approach. He also expects just three cuts this year.
    “The progress on inflation for the last six months is definitely there. … There’s always good news and bad news,” Clarida said Wednesday on CNBC’s “Squawk on the Street.” “Markets maybe are a little relaxed about where inflation is sticky and stubborn. But the data is definitely going in the direction that’s favorable for the economy and the Fed.”

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    Democrats Question Semiconductor Program’s Ties to Wall St.

    Two progressive lawmakers warned the Biden administration against creating a revolving door between industry and government as it prepares to hand out $39 billion in grants.Two Democratic lawmakers on Tuesday expressed concerns about ex-Wall Street financiers overseeing the Commerce Department’s distribution of $39 billion in grants to the semiconductor industry, saying the staffing raised questions about the creation and abuse of a revolving door between government and industry.In a letter to the Commerce Department, Senator Elizabeth Warren of Massachusetts and Representative Pramila Jayapal of Washington criticized the department’s decision to staff a new office overseeing grants to the chip industry with former employees of Blackstone, Goldman Sachs, KKR and McKinsey & Company.The lawmakers said the staffing decisions risked an outcome where staff members could favor past or future employers and spend taxpayer money “on industry wish-lists, and not in the public interest.”Commerce officials have rejected the characterization, describing the more than 200-person team they have built to review chip industry applications as coming from diverse backgrounds including investing, industry analysis, engineering and project management. In a statement, a Commerce Department representative said the agency had received the letter and would respond through appropriate channels.The criticism highlights the stakes for the Biden administration as it begins distributing billions of dollars to try to rebuild the country’s chip manufacturing capacity.More than 570 companies and organizations have expressed interest in obtaining some of the funding, and it is up to the Commerce Department to determine which of the projects deserve financing. Biden officials have said they will judge applications on their ability to enhance American manufacturing capacity and national security, as well as benefit local communities.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber?  More

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    Consumer spending rises in December to end solid holiday season, CNBC/NRF Retail Monitor shows

    The Retail Monitor, which excludes autos and gas, rose 0.4% in December, down from a gain of 0.8% in November.
    The core retail gauge, which also takes out restaurants, climbed a more modest 0.2% after gaining 0.7% in the prior month.
    For the year, it increased by 3.1% and the core was up 2.4%.

    People carry shopping bags as they visit a department store during the holiday season in New York City.
    Eduardo Munoz | Reuters

    Retailers chalked up solid gains in the final month to wrap up the holiday season, according to the CNBC/NRF Retail Monitor for December.
    However, the data also shows the true state of consumer spending is now clouded by a new factor: deflation.

    The Retail Monitor, which excludes autos and gas, rose 0.4% in December, down from a gain of 0.8% in November, when the holiday shopping season traditionally kicks off. It’s just below the long-run average of 0.6%.

    Arrows pointing outwards

    The core retail gauge, which also takes out restaurants, climbed a more modest 0.2% after gaining 0.7% in the prior month. For the year, the Retail Monitor increased by 3.1% and the core was up 2.4%.
    Some give back from the strong November was inevitable, and economists expect the economy to cool from the outsized growth in the third quarter. One question is whether December marks the beginning of a long-predicted normalization in consumer spending.
    Spending was clearly hampered by the slowdown in the housing industry. Three of the biggest negative categories were housing related:

    Electronics and appliances (-3.2%)
    Building and garden supplies (-1.5%)
    Furniture and home furnishings (-0.9%).

    Furniture sales have been negative in four of the past five months.

    Traditional holiday-related retail categories did better, including a 0.9% gain in general merchandise stores and a 2.6% increase in nonstore retailers, which incorporates internet sales. Restaurants and bars posted a 1.5% rise, it’s best showing since July.

    Arrows pointing outwards

    Deflation

    Deflation is another factor. Goods prices, less food and energy, have fallen for six straight months. They are down 3.7% at an annualized rate from June through November.
    The Retail Monitor found sales of clothing and accessories down 0.4% but the November CPI showed prices fell a much larger 1.3%. The December CPI, set to be released Thursday, should show more clearly how prices affected sales.
    Wall Street is monitoring how retailers are managing profit margins amid deflation and whether they can be as profitable with falling prices as they were with rising prices. At issue is whether retailers can control costs and if input prices are falling faster or slower than selling prices.
    Wall Street has been bullish on retail, with the SPDR S&P Retail ETF (XRT) up 21% since late October despite some giveback beginning in the trading days after Christmas. Retail earnings will be released beginning in late February, but some companies — such as Lululemon, Crocs and Five Below — have guided higher on better holiday sales.

    Good, not great Christmas

    For the two critical months of the holiday season, November and December, the Retail Monitor rose 3.7% and core retail gained 3.3% making it a good, not great Christmas. But last October and January surprised with stronger gains than either November or December, suggesting the full holiday shopping season could be longer than it has been traditionally.

    Arrows pointing outwards

    The new Retail Monitor is a joint product of CNBC and the National Retail Federation based on data from Affinity, a leading consumer purchase insights company. The data is sourced from more than 9 billion annual credit and debit card transactions collected and anonymized by Affinity and accounting for more than $500 billion in sales. The cards are issued by more than 1,400 financial institutions.
    The data differs from the Census Bureau’s retail sales report as it is the result of actual consumer purchases, while the Census relies on survey data. The government data is frequently revised as additional survey data become available. The CNBC/NRF Retail Monitor is not revised as it’s calculated from actual transactions during the month. It is, however, seasonally adjusted, using the same program employed by the Census.
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    Saudi Arabia nearly doubles estimate for the value of its mineral resources

    Saudi estimates for the kingdom’s untapped mineral reserves have jumped from $1.3 trillion in a 2016 forecast to $2.5 trillion.
    The Saudi government expects $20 billion in deals will be signed at the annual minerals forum in Riyadh this week.
    The concerted effort to invest in minerals exploration and mining and issue licenses to foreign investors is part of Saudi Arabia’s Vision 2030 program.

    Saudi Arabia nearly doubled the estimate for the value of its mineral resources and is seeing lucrative deals signed during its Future Minerals Forum held in Riyadh this week, ministers told CNBC.
    Estimates for the kingdom’s untapped mineral reserves have jumped from $1.3 trillion in a 2016 forecast to $2.5 trillion, according to Saudi Mineral Resources and Industry Minister Bandar Al Khorayef. The resources include gold, copper, phosphate and rare earth elements, offering new sources of subterranean wealth on top of Saudi Arabia’s mammoth oil reserves.

    “We are very excited about this news … it’s really a result of what we have been doing in the last four years,” Al Khorayef told CNBC’s Dan Murphy Wednesday.
    The Saudi government announced $20 billion in deals would be signed at the annual minerals forum, and the mining minister hailed recent reforms to the kingdom’s laws and business practices as being pivotal to that windfall.
    “Revamping our investment law has helped a lot of investment to come in the light, the number of licenses that we have issued in the last only two years is in the neighborhood of about 4,500,” Al Khorayef said.
    “Plus the amount of spending that we have been doing in our geological survey program; these two things alone allow us to access information and data on different reserves. And the beauty about the number … is really it’s the combination of new findings, especially with the rare earth metals, plus also more deposits of what we already know, in phosphate, gold, and copper, and zinc, and so on. So it’s a combination of all of this.”
    The minister noted that the figures were “only based on 30% of the Arabian shields exploration … which will continue hopefully to reach 100%.”

    Saudi Arabia has developed 33 new exploration sites for mining, and aims to award foreign investors more than 30 mining exploration licenses in 2024, it announced at the forum.

    The concerted effort to invest in minerals exploration and mining and issue licenses to foreign investors is part of Saudi Arabia’s Vision 2030 program, a multi-trillion dollar initiative launched by Crown Prince Mohammed bin Salman to diversify the kingdom’s economy away from oil, attract foreign investment and provide more jobs for its burgeoning youth population. Mining is seen by the Saudi government as the third industrial pillar that will move its economy away from reliance on hydrocarbons.
    Asked where the country was with respect to those Vision 2030 goals, the mining minister was optimistic.
    “You know, sectors such as tourism show quick results, we are maybe a slower sector. But when I see the pipeline, the different projects that we are doing, pipeline of private sector investment, pipeline infrastructure, that is really to me the true proof that we are also going to hopefully meet our targets.”
    “Our job actually today in the ministry and the ecosystem is to help accelerate, move projects much faster,” he said, stressing the importance of working with investors to address their needs. Part of that is the kingdom’s new mineral exploration incentive program, announced Wednesday, that has a budget of more than $182 million.
    “Generally speaking, I’m really very happy to see the progress,” Al Khorayef said. “I mean, in terms of policies, it’s all set in terms of enablers, it’s all set in terms of the infrastructure. In terms of budgeting and financing all of the infrastructures, we have been enabled. So, you know, it’s our job now to do it.” More

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    Mortgage Rates and Inflation Could Draw Attention to the Fed This Election

    The Federal Reserve is poised to cut rates in 2024 while moving away from balance sheet shrinking. Yet a key event looms in the backdrop: the election.This year is set to be a big one for Federal Reserve officials: They are expecting to cut interest rates several times as inflation comes down steadily, giving them a chance to dial back a two-year-long effort to cool the economy.But 2024 is also an election year — and the Fed’s expected shift in stance could tip it into the political spotlight just as campaign season kicks into gear.By changing how much it costs to borrow money, Fed decisions help to drive the strength of the American economy. The central bank is independent from the White House — meaning that the administration has no control over or input into Fed policy. That construct exists specifically so that the Fed can use its powerful tools to secure long-term economic stability without regard to whether its policies help or hurt those running for office. Fed officials fiercely guard that autonomy and insist that politics do not factor into their decisions.That doesn’t prevent politicians from talking about the Fed. In fact, recent comments from leading candidates suggest that the central bank is likely to be a hot topic heading into November.Former President Donald J. Trump, the front-runner for the Republican nomination, spent his tenure as president jawboning the Fed to lower interest rates and, in recent months, has argued in interviews and at rallies that mortgage rates — which are closely tied to Fed policy — are too high. It’s a talking point that may play well when housing affordability is challenging many American families.Still, Mr. Trump’s history hints that he could also take the opposite tack if the Fed begins to lower rates: He spent the 2016 election blasting the Fed for keeping interest rates low, which he said was giving incumbent Democrats an advantage.President Biden has avoided talking about the Fed out of deference to the institution’s independence, something he has referenced. But he has hinted at preferring that rates not continue to rise: He recently called a positive but moderate jobs report a “sweet spot” that was “needed for stable growth and lower inflation, not encouraging the Fed to raise interest rates.”The White House did not provide an on-the-record comment.Such remarks reflect a reality that political polling makes clear: Higher prices and steep mortgage rates are weighing on economic sentiment and turning voters glum, even though inflation is now slowing and the job market has remained surprisingly strong. As those Fed-related issues resonate with Americans, the central bank is likely to remain in the spotlight.“The economy is definitely going to matter,” said Mark Spindel, chief investment officer at Potomac River Capital and co-author of a book about the politics of the Fed.Fed policymakers raised interest rates from near zero to a range of 5.25 to 5.5 percent, the highest in 22 years, between early 2022 and summer 2023. Those changes were meant to slow economic growth, which would help to put a lid on rapid inflation.But now, price pressures are easing, and Fed officials could soon begin to debate when and how much they can lower rates. Policymakers projected last month that they could cut borrowing costs three times this year, to about 4.6 percent, and investors think rates could fall even further, to about 3.9 percent by the end of the year.Officials have also been shrinking their big balance sheet of bond holdings since 2022 — a process that can push longer-term interest rates up at the margin, taking some vim out of markets and economic growth. But officials have signaled in recent minutes that they might soon discuss when to move away from that process.Already, the mortgage costs that Mr. Trump has been referring to have begun to ease as investors anticipate lower rates: 30-year rates peaked at 7.8 percent in late October, and are now just above 6.5 percent.While the Fed can explain its ongoing shift based on economics — inflation has come down quickly, and the Fed wants to avoid overdoing it and causing a recession — it could leave central bankers adjusting policy at a critical political juncture.Jerome H. Powell, the Fed chair, was nominated to the role by former President Donald J. Trump, who quickly soured on Mr. Powell, calling him an “enemy.”Pete Marovich for The New York TimesFormer and current Fed officials insist that the election will not really matter. Policymakers try to ignore politics when they are making interest rate decisions, and the Fed has changed rates in other recent election years, including at the onset of the pandemic in 2020.“I don’t think politics enters the debate very much at the Fed,” said James Bullard, who was president of the Federal Reserve Bank of St. Louis until last year. “The Fed reacts the same way in election years as it does in non-election years.”But some on Wall Street think that cutting interest rates just before an election could put the central bank in a tough spot optically — especially if the moves occurred closer to November.“It will be increasingly uncomfortable,” said Laura Rosner-Warburton, senior economist and founding partner at MacroPolicy Perspectives, an economic research firm. Cutting rates sooner rather than later could help with those optics, several analysts said.And Mr. Spindel predicted that Mr. Trump was likely to continue talking about the Fed on the campaign trail — potentially amplifying any discomfort.Since the early 1990s, presidential administrations have generally avoided talking about Fed policy. But Mr. Trump upended that tradition both as a candidate and then later when he was in office, regularly haranguing Jerome H. Powell, the Fed chair, on social media and in interviews. He called Fed officials “boneheads,” and Mr. Powell an “enemy.”Mr. Trump had nominated Mr. Powell to replace Janet L. Yellen as Fed chair, but it did not take long for him to sour on his choice. Mr. Biden renominated Mr. Powell to a second term. Mr. Trump has already said he would not reappoint Mr. Powell as Fed chair if he was re-elected.Of course, this would not be the first time the Fed adjusted policy against a politically fraught backdrop. There was concern among some economists that rate cuts in 2019, when the Trump administration was pushing for them, would look like caving in. Central bankers lowered rates that year anyway.“We never take into account political considerations,” Mr. Powell said back then. “We also don’t conduct monetary policy in order to prove our independence.”Economists said the trick to lowering rates in an election year would be clear communication: By explaining what they are doing and why, central bankers may be able to defray concerns that any decision to move or not to move is politically motivated.“The key thing is to keep it legible and legitimate,” said Matthew Luzzetti, chief U.S. economist at Deutsche Bank. “Why are they doing what they are doing?” More