The Trump Impact on the Fed's Hike Pathway
So much for bond traders’ speculation that Donald Trump becoming president would delay the Federal Reserve from deciding to raise interest rates. Now they’re wondering how many times policy makers could increase them in 2017. Treasury yields that came after Trump’s election as a sign inflation will be on the rise. That means the long-dormant part of the Fed’s dual mandate could force policy makers to act more swiftly to raise borrowing costs than they have in 2016, when they held off time and time again after increasing their target rate to a range of 0.25 percent to 0.5 percent at the end of last year. BNP Paribas Macro Strategist Michael Sneyd discusses market reaction with Anna Edwards and Yousef Gamal El-Din on "Bloomberg Daybreak: Europe."