The US president-elect Donald Trump is widely expected to introduce policies that could slow down the rate-cutting pace by the Federal Reserve in 2025.
The tariffs he has promised to impose on day-one of his next term, would bring short-term inflation to the domestic economy, as imports will become more expensive. On the other hand, if mass deportations are to happen, the labour supply would become tighter, resulting in higher wages and challenges for companies’ profitability.
There is uncertainty how many of the proposed policies could be implemented practically, and how large or wide-ranging retaliatory tariffs might be.
Long-end bond yields, for example, 30-year...
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