Trump's Election Did Not Alter Expectations for a 25 Basis Point Rate Cut from the Fed Today

Forex - The election of Donald Trump as the 47th president of the United States did not alter market expectations that the Fed will cut interest rates by 25 basis points at the FOMC meeting concluding today. Gregory Faranello from AmeriVet commented, "Trump's election does not change the likelihood of a 25 basis point cut from the Fed, but the central bank will need to remain vigilant going forward." Faranello also stated, "The election outcome reinforces our views of being gradual, cautious, providing limited forward guidance, and maintaining an open mindset." Archie Hart from Ninety One added that the Fed will continue to make policy decisions based on current data as the new Trump administration takes shape. "Volatility is likely. Markets will react to Trump's rhetoric,” Hart noted, also expressing his belief that Trump’s policies will have no meaningful impact on the economy until at least 2026. He argued that this suggests that the outlook for interest rates will not change significantly in the near term, despite the markets' initial reaction, stating, “We are only 12 hours into the new administration.”