Trump 2.0 may trigger an inflation storm, is the Fed's shift a foregone conclusion?
Trump's "2.0 version" may push up inflation, so the market is betting on a stronger U.S. bond yield and the dollar. However, as Democratic candidate Harris has changed the election situation recently, Trump's advantage is being weakened, and the momentum of this trade has also weakened. As of August, the Bloomberg Dollar Spot Index has fallen by nearly 2%, the biggest drop since the market weakened at the end of last year due to expectations of a shift in Fed policy.
At present, Fed officials have a clear attitude-as inflation gradually recedes, they are preparing for the first rate cut in this cycle. This means that monetary policy may usher in major adjustments, and the market will also face a new round of reshuffles.
Inflation is coming, will the Fed's shift come as expected? The situation is unpredictable, welcome to continue to pay attention to Lao Tan's in-depth analysis to provide the most timely market insights for your investment decisions!
