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  • Trump's Election Victory Puts Fed on Path for Fewer Rate Cuts

    From money.usnews.com

    U.S. President-elect Donald Trump's impending return to the White House appears to put the Federal Reserve on a slower and shallower path for interest rate cuts, with a slew of new policies embraced by the Republican leader poised to juice the economy and stall, or reverse, the slowdown in inflation. U.S. central bankers are still widely expected to cut the Fed's benchmark interest rate by a quarter of a percentage point to the 4.50%-4.75% range when they wrap up their two-day policy meeting on Thursday. Futures contracts tied to the Fed's policy rate are also pricing in a December rate cut, though with slightly less ... (full story)

  •  Guest
  • | IP XXXX::d81f
BS hes already said that he wants rates to be cut, which means he'll pressure the fed.
That translates to a $ pump and dump
Compulsions can be hard to resist
Its going to end wrong if it continues.
  •  Guest
  • | IP XX.XXX.152.152
Guest is right. Trump was the first of the two to mention lower rates. Trump wanted negative rates while he was the president. He is again going to pressure the Fed to cut rates by more and faster.
Inflation is already too high and it will be goosed by Tariffs, Tax Cuts, too much governmental spending and borrowing and with debt being too cheap in real terms (Relative to historical rates).
Trump will lean on the FED (He thinks he should have a say in rate decisions, even though it's meant to be an independent institution) both directly and indirectly as he has only ever known cheap debt for his businesses and he doesn't want a recession on his watch. If he doesn't get what he wants he'll remove Powell in time and be appointing friendly doves.
The consequences of the above are that, in theory, the FED rate will have to be higher in due course so expect lots of argument and turmoil next year and beyond. If so, a stronger dollar may mitigate some of the effect of tariffs on imports but then exports could suffer, especially if other countries play tit-for-tat.
The largest economy in the world will be able to cope with a lot of interlinking forces that others would not but it's not exempt.
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  •  Guest
  • | IP XX.XX.14.88
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  • Story Stats
  • Posted: Nov 6, 2024 10:54pm
  • Submitted by:
     Newsstand
    Category: Fundamental Analysis
    Comments: 5  /  Views: 6,408

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