Implode-o-Meter News - Trump Victory Could Prompt Fed to Raise Rates More Quickly

Mr. Trump's election was viewed as one of the few developments that might throw a wrench into the works. The Fed, which started the year predicting that it would raise rates four times, has instead left rates untouched in a range between 0.25 percent and 0.5 percent. The low rates are intended to stimulate economic activity by encouraging borrowing and risk-taking. If financial conditions tighten in the coming weeks, or volatility rises, the Fed might decide to delay a rate increase again.
"Faced with such a tightening in market-driven financial conditions, the Fed would be less likely to add a higher federal funds rate to the mix," wrote Vincent Reinhart, chief economist at Standish Mellon Asset Management, a division of BNY Mellon.

But a growing number of Fed officials are publicly advocating a rate increase, and the Fed has carefully prepared markets for the likelihood that it would raise rates. Moreover, the Fed has several weeks to watch and wait before its next meeting on Dec. 13 and 14.

On the trade point, see this article.

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Trump Victory Could Prompt Fed to Raise Rates More Quickly