The strength of the US economy also has its downsides, such as the dampening of expectations for a new rate cut, which the Fed President confirmed yesterday. Doubts are intensifying in Europe, but they are dissipating in Ibex, which is trying to save the week thanks to. the response of banks, renewable energy and the colonial economy.
Theses ‘Trump trade‘ remain in effect. As of yesterday evening, some of these theses have been officially ratified. The Republican candidate’s stunning election victory allowed these companies to experience faster economic growth in the United States, which benefited their companies. In turn, since Donald Trump’s victory became known, the market has been expecting a more moderate cycle of interest rate cuts initiated by the Federal Reserve.
own Fed ChairmanJerome Powell was responsible for ratifying this script last night. Jerome Powell confirmed the strength of the US economy and said that this strength gives the Fed more time to consider new options for cutting rates. The market reaction was quick, which significantly reduced forecasts for a rate cut at the December meeting.
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