In 4 hours, the Fed will make its rate decision 👀
There’s a 98% chance of a 25 bps rate cut. However, with Trump’s election victory, there’s a possibility of a future pause in monetary easing.
Trump’s promises to cut taxes and reduce the national debt contradict each other, as the budget will receive less revenue. The new president’s actions could lead to rising inflation, which would hinder the Fed’s plans for further rate cuts.
Plus, Trump wants to gain control over the Fed 😁
After the meeting, there will be the traditional press conference with Jerome Powell, where he may be asked about policy changes in light of Trump’s victory.
It could get volatile 🕯
