Analyst: Trump's victory directly led to a reduction in the Fed's expectations of rate cuts before 2025

IG market strategists said Trump's election as US president has directly led to lower expectations for Fed rate cuts before 2025, with a potential "red wave" meaning little resistance to his tax cuts and spending plans, coupled with his stance on raising tariffs. "Overall, this could complicate the Fed's efforts to fight inflation, and we may expect the Fed to be more cautious in future easing, suggesting upward pressure on yields and a stronger dollar," strategists said. Traders now see a 68% chance of a 25 basis point rate cut by the Fed in December, compared with about 83% before Trump's victory. (Jinshi)