Investment bank: The Fed may cut interest rates by 25 basis points tonight, but it will take time to eliminate the dovish tendency

Odaily Planet Daily Report: According to the analysis of the Nordic Union Bank, with Trump's victory in the US election and the high probability of the Republican Party controlling both the Senate and the House of Representatives, the market should expect that most of his campaign promises will be fulfilled. The Federal Reserve may cut interest rates by 25 basis points tonight and in December automatically, as they believe the current interest rate is restrictive. If the current strong economic development continues, coupled with the impact of Trump's victory, the Federal Reserve should soon become less certain whether these preemptive rate cuts are necessary. It will take some time for the impact of Trump's policies on inflation to be reflected in the CPI data, but we should start to see the impact on more hiring and lower immigration in the early part of next year. We are uncertain when the Federal Reserve will ultimately decide to stop cutting interest rates, but the most likely scenario is that the Federal Reserve will cut interest rates by another 25 basis points in March next year, before the dovish FOMC members are convinced, although the possibility of no rate cuts in 2025 is also high. (Gold Ten)