'The market is right': Former Fed policymaker Mester sees fewer rate cuts next year after Trump's victory

Former Fed policymaker Loretta Mester suggested that the U.S. Federal Reserve may carry out fewer interest rate cuts next year due to President-elect Donald Trump’s proposed global tariffs, which could impact the world economy. Markets have adjusted their forecasts for rate cuts following Trump’s election victory, with expectations of 50 basis points in the first half of 2025 and further reductions later in the year. Concerns are rising among global policymakers about the potential negative effects of Trump’s tariff proposals, with Governor of the Bank of Finland Olli Rehn warning that a trade war would be detrimental to the global economy.

Full Article