#Trump Policies Could Force Fed Rate Hike#

The view that Trump’s policies could lead to a Fed rate hike is largely based on the potential for inflation they could generate. Analyst Tim Murray points out that Trump’s tariff and immigration proposals could exacerbate inflation, forcing the Fed to halt rate cuts or even raise rates. This would cause significant market volatility, with energy and financial sectors potentially benefiting from a more favorable regulatory environment, while renewable energy companies could face pressure. Additionally, the aggressive trade policy could impact non-US equities, leading to volatility in affected sectors. Although the current trend shows a decrease in 10-year Treasury yields, this could change in the future, ultimately leading to Fed rate hikes.