Chancellor Rachel Reeves is in Washington D.C. for her first IMF Annual Meetings, where she will say that the Budget is about investing in future growth.

The UK government website explains that Rachel Reeves will tell her global counterparts that the Government’s first Budget will “invest in the foundations of future growth,” as she attends her first annual meetings of the International Monetary Fund (IMF) in Washington D.C as Chancellor.

The Chancellor will pledge that the Budget next week will be “built on the rock of economic stability” to fix the foundations and deliver change. She will set out how public investment will help fuel mission-led government, from boosting investment in science and technology, transitioning to clean energy and upgrading infrastructure.

The Chancellor will attend G7, G20 and IMF meetings to represent Britain’s interests on issues including the global economy, the international financial system and ongoing support for Ukraine. This follows the UK’s announcement of its £2.26bn contribution to the G7’s Extraordinary Revenue Acceleration (ERA) Loans for Ukraine scheme, backed by the profits from sanctioned Russian sovereign assets. She will also hold a series of bilateral meetings with her international counterparts.

Chancellor of the Exchequer Rachel Reeves said:

A Britain built on the rock of economic stability is a Britain that is a strong and credible international partner. I’ll be in Washington to tell the world that our upcoming Budget will be a reset for our economy as we invest in the foundations of future growth.

It’s from this solid base that we will be able to best represent British interests and show leadership on the major issues like the conflicts in the Middle East and Ukraine.

At the Annual Meetings, Chancellor Reeves will support proposals to expand financing for development, needed for countries to meet the United Nations’ Sustainable Development Goals and tackle unsustainable debt. She will also press for all G20 countries to meet G20 best practice on debt transparency and move swiftly to implement support for countries facing pressing liquidity problems. The Chancellor will welcome the agreement of a new G20 roadmap to scale up financing to developing countries through Multilateral Development Banks.

It is the 80th anniversary year of the founding of the IMF and the World Bank, established at a conference in Bretton Woods, New Hampshire in 1944 to promote international cooperation on economic and monetary policies. At this years’ gathering the Chancellor will also call for change to the global financial system to deliver a fairer deal for vulnerable countries.

The IMF released its latest survey of the global economy on Tuesday, in which the UK’s growth forecast was upgraded to 1.1% in 2024. Whilst this is welcome, the Chancellor will make clear to her counterparts that there will be more long-term decisions required to reinforce stability and deliver on the promise of change at her first Budget on 30 October.

The Chancellor’s trip to Washington D.C. follows the International Investment Summit earlier this month, at which it was announced that nearly 38,000 jobs are set to be created across the UK thanks to a total of £63 billion in investment commitments from businesses around the world. The vote of confidence in the UK is a clear sign Britain is open for business and ready to drive sustainable growth across the country.

• Reeves will set out how public investment will drive innovation in science and technology, the transition to clean energy, and upgraded infrastructure.
• Chancellor to represent British interests in G7, G20 and IMF discussions on the global economy, international financial system and ongoing support for Ukraine.

Meanwhile, across the water in the final weeks of 2024’s election campaign, Presidential preference polls remain close, making it difficult to predict the outcome. Democratic nominee, Vice President Kamala Harris, and Republican nominee, former President Donald Trump, appear to be running neck-and-neck in both national polls as well as in key “battleground state” voter surveys.

The state level vote is the most important, as the Presidency is decided by the electoral college outcome. In most cases, the candidate who wins a state wins all of the electoral votes of that state. 270 electoral votes (out of 538 total) are required to win the presidency.

The election landscape changed in July when President Joe Biden opted not to seek a second term. “This is no longer an election that is directly a referendum on an incumbent,” says Rob Haworth, senior investment strategy director for U.S. Bank Asset Management. “Market uncertainty often centers around whether an incumbent will lose, but come January 2025, we know there’s going to be a change of president one way or the other.”

Although the campaigns draw constant headlines, the election has had little noticeable market impact, according to Haworth. “The market is more focused on third quarter corporate earnings. It isn’t likely to price in any election factors unless there’s a meaningful change to expectations.”

Key takeaways

• President Joe Biden’s unexpected departure from the race set up a showdown between Democratic Vice President Kamala Harris and Republican former President Donald Trump.
• The presidential race is considered “too close to call,” leaving markets uncertain about a likely winner.
• While public interest in the election is high, it helps to maintain a proper perspective regarding any potential impact on capital markets based on election cycle outcomes.