Trump’s Victory Likely to Deepen Policy Divide Between Federal Reserve and European Central Bank

Analysts at Nomura Securities suggest that Donald Trump’s presidential victory could intensify policy differences between the Federal Reserve (Fed) and the European Central Bank (ECB). Under Trump’s administration, the Fed may halt its current easing cycle, focusing instead on stability amid potential trade-driven inflation.

Meanwhile, as economic pressures mount in Europe, the ECB might consider more aggressive measures, though analysts believe the ECB remains too cautious to implement preemptive rate cuts. Nomura Securities does not anticipate a 50-basis-point rate cut from the ECB in December, expecting a more measured response to economic challenges.