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【Nordic Union Bank: Eliminating Dovish Bias Will Take Time, Fed to Cut Rates by 25 Basis Points Tonight】 November 7th, Nordic Unibank analysis stated that with Trump winning the U.S. presidential election and the Republican Party likely to control both houses of Congress, the market should expect most of his campaign promises to be fulfilled. The Fed may cut rates by 25 basis points tonight and in December automatically, as they see the current rate as restrictive. If the current strong economic growth continues, coupled with the impact of Trump's victory, it should soon make the Fed less certain about the need for these preemptive rate cuts. The impact of Trump's policies on inflation will take some time to show up in CPI data, but we should begin to see the effects on more hiring and lower immigration early next year. We are uncertain about when the Fed will ultimately decide to stop cutting rates, but most likely, the Fed will cut rates again by 25 basis points in March next year, until the dovish-leaning FOMC is convinced, even though the possibility of no rate cuts in 2025 is also high. (Jin10)
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