According to Odaily, a survey conducted by Bank of America prior to the election night indicated that 25% of fund managers anticipated a 'no landing' scenario for the U.S. economy over the next 12 months and during a potential Trump 2.0 era. This scenario suggests that the economy would not experience a significant slowdown, inflation would not continue to decline, and might even rebound, necessitating another rise in interest rates.
Following the announcement of the election results, the proportion of fund managers expecting this 'no landing' scenario increased to 33%. This shift reflects growing concerns about the economic trajectory, where the absence of a slowdown could lead to persistent inflationary pressures. The potential for interest rates to rise again underscores the challenges faced by policymakers in balancing economic growth with inflation control. The survey highlights the uncertainty surrounding the U.S. economic outlook and the implications of political developments on financial markets.
