Businesses hesitant before November 5 elections: Federal Reserve

Uncertainty about the upcoming US elections had cooled economic activity across the country, the Federal Reserve said Wednesday, noting that many businesses were pausing major decisions until after Election Day.

US presidential and legislative elections take place on November 5, with Republican former president Donald Trump running against Democratic Vice President Kamala Harris. Every seat in the House of Representatives is also up for grabs, along with a third of the seats in the Senate.

While the overall economic picture has changed little since early September, respondents in most Fed districts noted that many businesses were hesitant to invest ahead of the elections, the US central bank said in its "beige book" survey of economic conditions.


In the Boston Fed's district, "contacts saw risks to the overall business climate from uncertainty surrounding the presidential election," the Fed said.

Several contacts reported that they saw the pre-election uncertainty as normal, and that they expected business activity and consumer confidence to pick up again after November 5.