How will the Fed and the BoE respond to Trump win?! | MarketTalk: What’s up today? | Swissquote

Show notes

The 2024 US election delivered a decisive victory for Donald Trump, with Republicans positioned to gain control of both houses of Congress.
US equities gained, led by banks, energy stocks and small caps, Bitcoin and US dollar strengthened, gold and Swiss franc fell, along with a decline in metals and international equities, and major & EM currencies.
While the US election clarity is cheered by some pockets of the market, there are rising uncertainties regarding how the anticipated pro-US growth policies and Trumpflation will resonate in the rest of the world, and at the Fed.
In this new context (as says Emmanuel Macron), the Bank of England (BoE) has the hard task to deliver its first policy decision post-Trump. The BoE is expected to cut rates by 25bp today. The markets price in two more rate cuts by the end of next year, and gives a 35% chance for a third one. But the UK budget and the Trump win could complicate the plans.
Listen to find out more!