U.S. Economy Shows Resilience Amid Trump Inauguration

According to PANews, as the global market anticipates Donald Trump's inauguration, the U.S. economy continues to demonstrate resilience. Recent employment data has been robust, and retail sales figures remain steady, with a core inflation rate of 3.2%, which is still at a high level within its range. The cyclical and structural dynamics of the U.S. economy align with the natural interest rate, which is currently close to the Federal Reserve's fund rate. However, inflation remains stubbornly above the target level, providing the Federal Reserve with a reason to conclude its easing cycle. The potential impact of a Trump 2.0 administration on the U.S. and global economies is highly uncertain, with protectionist policies likely to influence inflation expectations. Of greater concern is the possibility that excessive fiscal stimulus could affect the economy's operational potential. Contrary to market pricing, Bank of America believes that the Federal Reserve has already completed its rate-cutting measures.