0754 GMT - The Federal Reserve is still likely to cut interest rates by 25 basis points Thursday after Donald Trump's presidential election win, Citi's Jamie Searle and Aman Bansal say in a note. A rate cut in December, however, is more of an open question. Fed Chair Jerome Powell may downplay the policy implications of Trump's victory for now, although there are concerns that Trump's plans could stoke inflation. Another rate cut when the economy looks solid and fiscal stimulus lies ahead raises questions, the strategists say. The two-year U.S. Treasury yield falls 3 basis points to 4.236%, reversing a little of Wednesday's sharp selloff, according to Tradeweb. (emese.bartha@wsj.com)
(END) Dow Jones Newswires
November 07, 2024 02:54 ET (07:54 GMT)
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