While question marks regarding the possible effects of the policies to be followed by Donald Trump, who has been re-elected as the US President, on the economy lead investors to be cautious, the concern that Trump’s policies may disrupt the fight against inflation remains.
Analysts stated that, although the Fed has gradually softened it, the possible uncertainties regarding the economic consequences that may arise from the implementation of Trump’s policies remain strong, despite the tight monetary policy it has been following for a long time.
critical statement
While the risks that may arise from a dispute between the Fed administration and Trump continue to remain in the focus of investors, clues regarding this issue will continue to be sought in Fed Chairman Jerome Powell’s speech on Thursday.
While these developments cause the risk perception to remain high, it seems that the selling pressure is also reflected in the bond markets.
Interest rates increased, Bitcoin declined
The US 10-year bond interest rate increased by approximately 13 basis points yesterday, reaching its highest close since July 1, and completed the day at 4.44 percent.
On the other hand, the price of Bitcoin, which broke consecutive records, also declined yesterday, as it became clear that Trump’s names with a moderate approach to risky assets such as the cryptocurrency market will enter the Senate. Bitcoin, which reached the 90 thousand dollar limit yesterday, dropped by 3 percent to 87 thousand dollars.
While it is predicted that the Fed will reduce interest rates by 25 basis points with a 60 percent probability next month, it is estimated that signals regarding the pace of interest rate cuts next year will gradually influence the direction of asset prices.
Source: www.dunya.com
