Fed's Future Rate Cuts May Depend On Trump's Policies, Says Analyst

According to BlockBeats, IG market strategist Yeap Jun Rong has indicated in a report dated December 19 that the trajectory of future interest rate cuts by the Federal Reserve could be influenced by the policies of President-elect Trump, which remain unclear at this stage. Yeap noted that Trump's initial statements on tariffs appeared quite aggressive. However, he added that the extent to which these measures will be implemented is uncertain. As the policies become clearer, the Federal Reserve might initially lean towards a more moderate rate-cutting cycle. Furthermore, Yeap suggested that with the conclusion of the Federal Reserve meeting, unless the Bank of Japan makes an unexpected decision, U.S. stock markets might gradually rise in the final weeks of 2024. However, reaching new record highs by the end of the year could be challenging due to a lack of further catalysts.