US Fed rate cut in December already priced in, says Richard Harris – CNBC TV18
Market commentators believe a rate cut is almost a done deal, and markets have already priced it in, he said.
“So, we will look forward to what will likely happen next year. The big question is whether Jerome Powell will be there in a few months because it is quite clear that he is generally looked to oppose Trump,” he said.
Harris thinks US politicians will push to keep rates low, and the key question is how much the Fed will resist. “So, it is likely to be quite a battle there,” he added.
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President-elect Donald Trump’s economic policies are most likely inflationary and not particularly beneficial for the US economy, which could lead to lower interest rates as the economy slows.
Harris believes global markets are likely to remain reasonably buoyant, with India expected to follow suit
“The markets had a fantastic run this year, so one needs to bear that in mind,” Harris said, highlighting that periodic breathers are inevitable after strong market performances.
However, a key focus for investors will be the early weeks of 2025, which Harris sees as a ‘delicate period’ for both Indian and global markets. “The first couple of weeks of the year will be when people reassess and start to readdress what they think about 2025,” he said.
2024 has been a fantastic year overall for equities, with the exception of China.
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Harris believes that the idea of tax cuts is very dangerous for the US market. He is skeptical about how much Trump will be able to do on this front because of the bond vigilantes but it is a concern for investors, he said.
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