Mercer LLC's Chief Investment Officer said that the Federal Reserve is increasingly likely to maintain interest rates before the end of the year, rather than getting involved in the increasingly intense competition of the US presidential election.

Hooman Kaveh said in an interview with Bloomberg TV on Tuesday in Melbourne: "If you are a member of the Federal Reserve Board, you would like to say 'Let's maintain the status quo and not move before the Presidential election.'"

Kaveh said he still expects the US to cut interest rates twice before the end of the year, but as the new Republican nominee Trump may face off with rival Harris after US President Biden withdraws from the election, this situation may change.

"As long as things look good and the Fed's current policy has not put undue pressure on any specific domestic or international factors yet, despite slight deviations, and the economic growth is steady, employment is good, and inflation is also good. So, I think they may be content with the current situation. "

Mercer is part of consulting and insurance company Marsh McLennan, managing $379 billion in assets globally, and will hold its Pacific Global Investment Forum for clients in Melbourne this week.

"The Fed wants to minimize any interference with the election as much as possible, as any action during the election will clearly be controversial," Kaveh said.

Trump previously stated in an interview that if he was re-elected, he would allow Powell to serve as Federal Reserve chairman until May 2026. However, he also added some conditions in the statement that he would continue to allow Powell to serve "especially in cases where I think Powell's actions are justified." In other words, even if Trump wants to dismiss Powell, it's not clear whether he can legally do so, but Trump's words seem to suggest that he thinks he has some leeway to choose.

Trump ultimately hopes for low interest rates. When asked about his economic philosophy, Trump spoke of "low interest rates and low taxes." However, there's one problem: the Federal Reserve is independent of the White House's interest rate policy. Some conservatives believe that Trump may try to exert control over the Fed's policy, but Trump did not mention this in the interview. Instead, he talked about reducing inflation, which would in turn allow the Fed to cut interest rates. But Trump does not want the Fed to take action before the election. He called a rate cut before the election "something they shouldn't do."