Investors prepare for the busy week ahead with the US presidential election on Tuesday and the Federal Reserve's November meeting on Thursday. Comerica Bank chief economist Bill Adams joins Catalysts Hosts Seana Smith and Madison Mills to discuss how the election and FOMC meeting are expected to affect the US economy.

"One thing that the Fed is good about is waiting until they have concrete information about fiscal policy before incorporating it into how they set monetary policy. I think the election outcome, the driver of fiscal policy, is going to be at least as much what happens in Congress as what happens in the White House. If we have [a] divided government, that will probably mean more of a status quo fiscal policy, a one-party sweep [is] more likely to see additional fiscal stimulus, which would be a reason for the Fed to slow the pace of rate cuts in 2025. So we'll probably know that by December. Probably not going to know that by Wednesday," Adams tells Yahoo Finance.

He adds, "It's possible that the economy reaccelerates because of fiscal spending. It's possible the economy reaccelerates because the Fed's headwinds to interest rate-sensitive sectors stop being a block to multi-family housing, manufacturing, etc. But I think as long as inflation stays under control, I think the Fed will feel comfortable allowing the economy to grow at its potential rate, potentially a little bit faster than its long-run level right now, because we've seen a lot of workforce growth in the last two years, and because we're seeing excellent productivity growth right now. So it's possible we'll still see solid economic growth with inflation staying around where it was in September, which is just a hair above the Fed's 2% target by the PCE index."

Watch the video above for more on the economist's expectations surrounding the US election and the upcoming Fed meeting.

To watch more expert insights and analysis on the latest market action, check out more Catalysts here.

This post was written by Naomi Buchanan.