The uncertainty surrounding next week’s Fed meeting is not about the out come of that meeting – a 25 basis point rate hike is all but guaranteed – but over President-elect Donald Trump’s potential reaction to that decision. Trump has said little about the Fed since winning last month’s election but, after claiming during the election campaign that the Fed was leaving rates low for political purposes, there is a risk that he will renew his attacks. We’re now in a world where the markets will be reacting to Trump’s reaction to the Fed announcement.
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