JPMorgan: Fed may pause easing cycle as early as December if Trump wins election
On Nov. 5, JPMorgan analyst David Kelly said the Federal Reserve could pause its easing cycle as early as December if Trump wins the U.S. election this week.Kelly argued that Trump's expansionary fiscal policy plans would push up inflation and prevent interest rates from falling. He said, “If Trump wins the election, then he will adopt a more expansionary fiscal policy that could trigger a trade war, deficits will widen and interest rates will rise.” Kelly also said the Fed will almost certainly cut rates by 25 basis points in its rate decision on Friday, even if the election takes place before then.
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