Trump's Win Sparks Fed Rate Cut Uncertainty

Donald Trump's election win is expected to slow the Federal Reserve's rate-cutting path, with traders now predicting only two rate cuts in 2025, potentially ending the current campaign earlier than anticipated. Trump's economic policies, including higher tariffs and tax reductions, are expected to boost economic growth and tighten the labor market, which could increase inflationary pressures. This shift in economic outlook has led to revised expectations for fewer rate cuts, as the Fed recalibrates its policy to align with closer-to-target inflation and a cooling labor market.