Trump vs. Powell: Trump's Return Sets Stage for Fed Showdown
Fed cuts rates to 4.5%-4.75% as Powell prepares for potential clash with returning president over monetary policy.
Investors Bet Big on Trump: Record-Breaking $20 Billion Inflow to US Equities
On the day of Donald Trump's decisive victory in the presidential election, US equity funds experienced a massive influx of $20 billion, marking the largest single-day investment in five months. This surge in investment, particularly in small-cap stocks, coincided with US stocks reaching record highs and the S&P 500 Index heading for its biggest weekly advance in a year. While Trump's proposed corporate tax cuts are expected to boost earnings, concerns remain about potential inflationary effects of his tariffs and immigration policies.
Bond Market Whipsaws as Investors Digest Trump's Win
Donald Trump's victory in the 2024 U.S. presidential election has caused significant volatility in the bond market. Initially, Treasury yields surged on expectations of higher economic growth and inflation under a Trump administration. However, as the week progressed, yields retreated as investors reassessed the potential timing and impact of Trump's proposed policies. The bond market's reaction highlights the uncertainty surrounding the new administration's economic agenda and its potential effects on inflation and interest rates
Rate Cut Continues, but Fed Faces New Challenges in Trump's Second Term
The Federal Reserve has cut interest rates for the second consecutive time, lowering the federal funds rate to 4.5%-4.75%. While this move aims to support economic growth, uncertainty looms due to Donald Trump's re-election and his proposed economic policies. Fed Chair Jerome Powell emphasized the central bank's independence, stating he would not resign if asked by Trump, setting the stage for potential tensions between the Fed and the incoming administration.
Hedging Against Uncertainty: The Rise of Gold and Silver in Election Year
In his latest analysis, Mike Maharrey contends that the real winners of the 2024 election are gold and silver. He points out that despite changing administrations, trends of expanding government and rising debt persist. Maharrey emphasizes the strong performance of precious metals, with gold setting 39 all-time highs and both gold and silver outpacing major stock indices. He advocates for investing in these metals as a protective measure against economic instability and federal policy impacts.