Although the Federal Reserve has been staying as far away from politics as possible in 2024, Tuesday's U.S. presidential election is crucial for the Fed and its chairperson, Jerome Powell. The next U.S. president will fill multiple vacant positions, and Powell's term as Fed chair will also end in May 2026. Trump or Harris will be able to choose the next leader of the Fed. Mark Spindel, chief investment officer at Potomac River Capital and a historian who studies the Fed and politics, noted in a recent interview that this is "an important fork in the road for the Fed." He added that if the Trump team wins, they obviously "will be very proactive." During his presidency, Trump has often attacked Powell and publicly pushed the central bank to do what he wants, even hinting at negative interest rates, and Trump has hinted that he might do more if he gets a second term. Fed policymakers will also have a chance to discuss those implications this week, as the FOMC meets in Washington, D.C., on Wednesday and Thursday. The main topic for officials is whether to cut interest rates for the second time in 2024. Markets expect the Federal Reserve to cut rates by 25 basis points this week, but politics will certainly haunt them as well. (Golden Ten)