#Trump Policies Could Force the Fed to Raise Rates#

Trump's policies could lead to the Fed raising interest rates, as his tariffs and immigration proposals could stoke inflation. Tim Murray, an analyst at T.Rowe Price, notes that this inflationary pressure could force the Fed to halt rate cuts or even raise rates, leading to significant market volatility. He believes that the energy and financial sectors could benefit from a more friendly regulatory environment, while renewable energy companies could face pressure from the repeal of parts of the Inflation Reduction Act. Additionally, Trump's aggressive trade policies could impact non-U.S. stocks, leading to volatility in affected sectors. Overall, Trump's policies could have a significant impact on the U.S. economy and could lead to a more hawkish monetary policy from the Fed.