The #Fed has satisfied its dual mandate of keeping #inflation & #unemployment low.
But the arrival at that finish line now coincides w/ #Trump’s promise to enact an entirely new #fiscal & #economic regime. While analysts are uncertain about how exactly that could materialize & how severe it might be, #markets have responded by selling off #bonds in anticipation of a return to inflation from a combo of Trump’s pro-*growth* & #combative #trade policies.
#economy #USpol
https://www.nbcnews.com/business/economy/federal-reserve-interest-rate-decision-november-2024-post-election-rcna179025
But the arrival at that finish line now coincides w/ #Trump’s promise to enact an entirely new #fiscal & #economic regime. While analysts are uncertain about how exactly that could materialize & how severe it might be, #markets have responded by selling off #bonds in anticipation of a return to inflation from a combo of Trump’s pro-*growth* & #combative #trade policies.
#economy #USpol
https://www.nbcnews.com/business/economy/federal-reserve-interest-rate-decision-november-2024-post-election-rcna179025
Fed cuts key interest rate a quarter point but signals ongoing concerns about inflation
The Federal Reserve announced Thursday it was lowering its key interest rate by a quarter point — a widely expected move that coincides with inflation approaching the central bank's 2% goal.Rob Wile (NBC News)
Nonilex •
And that would run directly counter to #Trump’s goal to maintain lower interest rates as part of a policy of accelerating growth.
“Although Trump has shown a consistent preference for easy monetary policy, we believe that the #Fed would engage in a less aggressive cutting cycle under a 2nd Trump admin due to the #inflationary nature of additional #tariffs,” Nomura Holdings financial told clients.
GlennMG hat dies geteilt