How will the election impact our economy? Are the market and the public ignoring the risks of election chaos that could follow Election Day? What if the winner is unclear for an extended period? And how might this chaos impact the Federal Reserve’s plan to reduce interest rates over the next few months?
Cornell College David Joyce Professor of Economics and Business Todd Knoop is available for comment:
“The market appears to have ‘priced in’ a Harris win to some extent, reflecting the strong historical relationship between year-to-date returns in the stock market and the incumbent party’s chance of winning the election. Stocks have been on a roll since Harris replaced Biden in the presidential campaign. If Trump wins or the winner is unclear for an extended period, it’s likely we will see market upheavals.” - Todd Knoop
“Regardless of who wins the presidency, on economic policy, the status quo will likely remain because of ongoing political paralysis in Washington. The reality is that on economic policy, the biggest difference between a Harris or Trump presidency is likely to be whether tariffs are raised in ways that are harmful to the U.S. Economy or tariffs are raised in ways that are catastrophic to the U.S. economy.” - Todd Knoop
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