Analysis: If Trump implements his policies, the monetary policies of the US and Europe may diverge greatly

Odaily Odaily News: The market expects that the Federal Reserve's monetary policy will differ significantly from that of the European Central Bank next year, as higher economic growth and inflation expectations in the United States will lead to a widening divergence between the two major economies. Market pricing shows that by the end of next year, the Fed's interest rate cuts will be only half of the ECB's, which is facing problems of weak economic growth and below-target inflation. Jennifer McKeown, chief global economist at Capital Economics, said: "We expect the Fed to take a fairly cautious approach due to rising inflation risks, while the ECB will respond strongly to economic weakness, which will lead to a divergence in the easing cycles of the two." (Jinshi)