“On the other side of the ledger, however, tax cuts for all is going to leave a hole in the federal government’s finances. This looks like bad news for bonds, as is the general reflationary nature of much of the Trump programme. Even worse from a US Treasury market perspective, Mr Trump does not have an easy relationship with either the Fed or Janet Yellen in particular.”
While Mr Trump will not be inaugurated until January 20 2017, a lack of clear policy statements from the president-elect, aside from confirmation the US will withdraw from the Trans-Pacific Partnership trade deal, means the effect of Mr Trump’s presidency on markets is difficult to ascertain.
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Nyree Stewart is features editor at Investment Adviser
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