The immediate election aftermath seems to strengthen the case for another Fed rate hike.
The US presidential election is finally behind us, though not with the outcome most people expected. Similar to last summer’s Brexit referendum in the UK, Donald Trump defied the polls, the betting markets, and most expert predictions to beat highly favored Hillary Clinton. The initial market reaction was extremely negative, but markets recovered before the day was over. Right now investors are reacting mostly to the increased uncertainty and speculation about tax cuts and looser fiscal policy. It will take some time before we know anything more concrete about the impact of a Donald Trump administration on the US economic outlook.
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