Connect with us

Hi, what are you looking for?

Daily Market SolutionDaily Market Solution

Investing

Former Fed official Mester sees fewer rate cuts in 2025 after Trump elected – CNBC

Investing.com — The Federal Reserve may slow its expected pace of rate cuts in 2025 due to potential global tariffs under President-elect Donald Trump’s incoming administration, according to former Fed official Loretta Mester, CNBC reported.

Speaking at the UBS European Conference in London, Mester suggested that the Fed could reduce its planned rate cuts, aligning with market predictions.

“The market is right,” she remarked, “they’re probably not going to have as many cuts next year as was assumed or expected in September,” CNBC said.

Following Trump’s election, markets have recalibrated their expectations, now anticipating fewer rate cuts due to the potential inflationary impact of Trump’s proposed tariffs.

The CNBC report highlights that Trump has pledged to reinstate sweeping tariffs, including a 10-20% levy on all U.S. imports, with a severe 60-100% rate specifically targeting Chinese goods.

Analysts and economists are concerned such measures could boost inflationary pressures, impacting the Fed’s rate trajectory.

CNBC said Mester noted that December could see a preliminary assessment of how the Trump administration’s fiscal policies might affect the Fed’s forecast.

However, the publication added that Mester foresees the full fiscal package and its implications for monetary policy unfolding in early 2025.

UBS also hosted European Central Bank policymaker Olli Rehn, who emphasized the potential global fallout from a renewed U.S.-China trade war, calling it “detrimental” and urging the European Union to be better prepared this time, unlike during the 2018 trade tensions.

“A trade war is the last thing we need,” he said, underscoring broader concerns among policymakers about Trump’s impact on global economic stability.

This post appeared first on investing.com







    You May Also Like

    Editor's Pick

    Extremist supporters of former president Donald Trump are lashing out online against Usha Vance, the wife of Trump’s running mate, Sen. J.D. Vance (R-Ohio),...

    Investing

    Overview Energy Fuels (TSX:EFR,NYSE:UUUU) has been the largest producer of uranium in the United States and an emerging producer of rare earth elements (REEs)....

    Investing

    Investor Insight Silver prices breached $30/oz in the second half of May 2024 as investor demand drove prices to their highest in more than...

    Investing

    Overview Flynn Gold Limited (ASX: FG1) is an Australian mineral exploration company with a portfolio of projects in Tasmania and Western Australia. Tasmania is...

    Disclaimer: Dailymarketsolution.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.


    Copyright © 2024 dailymarketsolution.com