JPMorgan Chase: Trump's Victory Could Prompt Fed to Pause Rate Cuts as Early as December

BlockBeats News, November 4th, Chief Global Strategist of JPMorgan Asset Management, David Kelly, stated that if Trump wins the U.S. election this week, the Federal Reserve may earliest pause its easing cycle in December. This is because Trump's expansionary fiscal policy plan would raise inflation and prevent interest rates from falling.

Kelly pointed out that if the Republican Party achieves a sweeping victory in Trump's win, more expansionary fiscal policies may be introduced, potentially triggering a trade war, widening the deficit, and thus leading to higher interest rates.

On the other hand, Kelly stated that if Vice President Harris wins, the economy may continue on its path to a soft landing. In this case, the Federal Reserve may stick to its expected accommodative policy path. (Jinse)