One week after Donald Trump pulled off the upset victory, the global financial markets have been rallying, even after cries and warnings of the opposite happening. But what about interest rates?
It has been hard to pinpoint Trump’s stance on the Federal Reserve and monetary policy since he has flip flopped on the matter several times. Does he want low rates or a rate hike?
Prior to Trump’s win, it was almost certain that the United States central bank would raise rates in December. What about now? Well, the market still does expect the Fed to raise rates at the Dec. 13 and 14 Federal Open Market Committee (FOMC) meeting.
According to the CME Group FedWatch tool, there is a 90 percent chance of a rate hike.
Here is the chart:
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