20 central banks announced interest rate decisions this week! The Fed's interest rate cut coincides with the U.S. election, is the market going to be a huge wave?

Global investors are holding their breath awaiting the results of the U.S. presidential election on November 5, and according to Bloomberg statistics, central banks of about 20 countries accounting for more than one-third of global GDP will announce their interest rate decisions this week after the election vote, although the election results are not yet available, the market generally expects that the Federal Reserve and most central banks will cut interest rates again in the coming week. 20 Central Banks to Announce Interest Rate Decisions This Week In the run-up to the November 5 election day, the Republican candidate Trump and the Democratic candidate Harris are in a fierce competition, and the central banks of the world's major countries continue to face many uncertainties, but setting aside the election, Federal Reserve officials have previously stated that they hope to continue to cut interest rates at a more gradual pace after cutting rates by 1 notch in September. The FOMC meeting will announce the interest rate decision at 2:00 a.m. Taiwan time on the 8th, and economists generally expect the Federal Reserve to cut rates by 1 notch, and then cut rates again in December. Data released last Friday showed that U.S. non-farm payrolls increased by 12,000 in October, the lowest level since 2020, which has strengthened the Federal Reserve's belief in cutting interest rates. The Federal Reserve has always tried to avoid politics, but the Federal Reserve is still launching a rate cut cycle in the final stages of the election, and the election results may depend on voters' views on the economy, although Federal Reserve Chairman Powell may emphasize in the post-rate decision press conference this week that the current situation requires a reduction in restrictive policies, he and his colleagues still face political risks. Bloomberg Economics economists say polls show the election is in a stalemate, and the winner will be able to reshape trade policy, especially Trump, who is likely to leverage this power if he wins. The report points out that the central banks of other countries around the world are facing a series of risks from economic slowdown to persistent inflation, even before considering the actual impact of Trump's tariff threats on global trade. While the Reserve Bank of Australia may keep rates unchanged in its rate decision announcement a few hours before the election on Tuesday, other central banks are prepared to take action, with the Bank of England, the Riksbank, and the Czech National Bank expected to make rate cut decisions after the election, and Brazilian officials may raise rates by as much as 2 notches. In such a closely contested presidential election, the more than 20 central banks announcing rate decisions in the coming week may need to prepare for a protracted election result until the result is announced, as in modern U.S. elections, the losing candidate usually concedes within a day or two, but the 2020 election results were not revealed until four days later. The Market May Face Violent Fluctuations It is noteworthy that at such a sensitive moment, the timing of the U.S. presidential election results and the Federal Reserve's interest rate decision are highly overlapping, which may trigger huge market volatility. The U.S. presidential election will be held on the 5th, which is equivalent to the early morning of the 6th in Taiwan, and the final result may take several days to be determined, expected to be announced between November 7 and November 8, while the FOMC meeting will announce the decision at 2:00 a.m. Taiwan time on November 8. These two major events are extremely close in timing. If Trump, who has recently repeatedly expressed support for cryptocurrencies, is defeated in the election, the cryptocurrency market may experience a slight decline in the short term, and if Trump wins, the cryptocurrency market may first see a slight increase, but then fall back, such volatility is mainly based on the policy uncertainty that Trump's re-election may bring, especially the impact on global trade and tariffs. Regarding the Federal Reserve's decision, if the market expectation of a 1 notch rate cut in November is met, the market reaction may be limited or see a slight increase, however, if the Federal Reserve's decision is unexpected, such as no rate cut or a larger rate cut, it may lead to a market decline, as this will break the market's expectations. Overall, currently, the dual pressures of high inflation and economic weakness are making the Federal Reserve's decision more difficult, and if the situation develops in an unfavorable direction under these two pressures, it may cause more violent market volatility, investors need to be highly vigilant against this dual risk, policy changes and election results will be major factors affecting the global financial market in the short term.