How inflationary are tariffs? Where will interest rates go next? The Fed is set to cut rates by 25bps, amid uncertainty about Trump's policies. The press conference with Chair Powell will be interesting. Live coverage from 18:30 GMT.
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Fed set to dodge political questions, rock markets anyway
President-elect Donald Trump vowed to raise tariffs and deport illegal immigrants. These policies have substantial economic consequences. How will the Federal Reserve (Fed) react to such moves? The general thought is that the new president's moves will be inflationary, but nothing is certain until he assumes office.
Fed Chair Jerome Powell will also address the recent jobs report, which was depressing, but skewed by hurricanes. Questions about the bump up in inflation will also be of interest. All in all, the path of the next rate moves is highly uncertain, and markets will cling to any clues to asseess where things are going and how to react.
Gold and Stocks needs lower rates to shine, the US Dollar would benefit from a more hawkish stance.
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