Insightful Word
  • Investing
  • Stock
  • Economy
  • Politics
  • Investing
  • Stock
  • Economy
  • Politics
No Result
View All Result
Insightful Word
No Result
View All Result
Home Economy

Federal Reserve seen on shallower rate-cut path after Trump’s election

admin by admin
November 6, 2024
in Economy
0
Federal Reserve seen on shallower rate-cut path after Trump’s election
0
SHARES
7
VIEWS
Share on FacebookShare on Twitter

(Reuters) – Donald Trump’s election as U.S. president is fueling financial market bets that the Federal Reserve will deliver fewer interest-rate cuts next year, on anticipation that a slew of new policies once he takes office will stall inflation’s downward progress.

Traders continue to price in a quarter-of-a-percentage-point interest-rate cut at the Fed’s rate-setting meeting on Thursday, and a high likelihood of another reduction in December, which would put the policy rate in a 4.25%-4.50% range.

But they now see just two more rate cuts next year, instead of the four that Fed policymakers had projected back in September, based on pricing in rate-futures markets.

That would bring the policy rate to the 3.75%-4.00% range, a percentage point lower than today, and likely no lower. In September most Fed policymakers expected the policy rate would end 2025 below 3.5%.

Trump campaigned on promises to fix what he sees as an ailing economy, and plans to impose higher tariffs, reduce taxes, and slow immigration to do that.

Economists say those policies are likely to lead to faster economic growth and a tighter labor market that, along with the higher import costs, would put upward pressure on prices.

But the impact of Trump’s policy could take some time to be felt, some analysts cautioned.

“The delay in the inflationary implications from tariffs and expansionary fiscal policy allows the Fed to continue to cut interest rates into 2026, as the central bank still needs to recalibrate monetary policy to be less restrictive,” Oxford Economics’ analysts wrote.

This post appeared first on investing.com

Previous Post

Affirm enters UK market, bringing competition to buy now, pay later landscape

Next Post

Hedge funds turn attentions to bank, bond and oil trades under Trump

admin

admin

Next Post
Hedge funds turn attentions to bank, bond and oil trades under Trump

Hedge funds turn attentions to bank, bond and oil trades under Trump

Trending News

2025 could be a peak year for Nvidia stock: analyst

2025 could be a peak year for Nvidia stock: analyst

January 16, 2025
Nvidia set to make history as AI frenzy fuels trillion-dollar surge

Nvidia set to make history as AI frenzy fuels trillion-dollar surge

July 3, 2025
Rivian outshines Tesla on key Q4 performance metric

Rivian outshines Tesla on key Q4 performance metric

February 21, 2025
Subscribe to Insightful Word


    Recent News

    Nvidia shares fall on China sales exclusion, weaker data center sales: analysts weigh in

    Nvidia shares fall on China sales exclusion, weaker data center sales: analysts weigh in

    August 28, 2025
    SentinelOne stock price forecast ahead of earnings: buy or sell?

    SentinelOne stock price forecast ahead of earnings: buy or sell?

    August 28, 2025
    Tesla wants millions of robotaxis by 2025, but will Waymo win the long game?

    Tesla wants millions of robotaxis by 2025, but will Waymo win the long game?

    August 28, 2025
    Urban Outfitters stock slides 4% despite strong quarter on cautious outlook

    Urban Outfitters stock slides 4% despite strong quarter on cautious outlook

    August 28, 2025

    Recent News

    Nvidia shares fall on China sales exclusion, weaker data center sales: analysts weigh in

    Nvidia shares fall on China sales exclusion, weaker data center sales: analysts weigh in

    August 28, 2025
    SentinelOne stock price forecast ahead of earnings: buy or sell?

    SentinelOne stock price forecast ahead of earnings: buy or sell?

    August 28, 2025

    Latest News

    • Nvidia shares fall on China sales exclusion, weaker data center sales: analysts weigh in
    • SentinelOne stock price forecast ahead of earnings: buy or sell?
    • Tesla wants millions of robotaxis by 2025, but will Waymo win the long game?

    About Insightful Word

    • Contacts
    • Cookie Notice
    • Privacy Policy
    • Terms of Service
    • Trading tools
    • Contacts
    • Cookie Notice
    • Privacy Policy
    • Terms of Service
    • Trading tools

    Copyright © 2025 Insightfulword.com. All Rights Reserved.

    No Result
    View All Result
    • Investing
    • Stock
    • Economy
    • Politics

    Copyright © 2025 Insightfulword.com. All Rights Reserved.