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2026-11-05 19:44:26
[Trump's Election Setback Eases External Political Pressure on the Federal Reserve] ⑴ Voters were highly focused on the cost of living in this election, and the Republican defeat reduced external pressure on Federal Reserve Chairman Warsh, allowing the Fed to focus more on its inflation target. ⑵ Since Trump's return to power in 2024, he has consistently pressured the Fed to cut interest rates, pushing for investigations and attempting to adjust board members, leading to market concerns that monetary policy was being dictated by political demands. ⑶ Some market analysts hypothesize that if Trump subsequently eases tensions in the Middle East and postpones new tariff plans, the risk of rising inflation will weaken, and the Fed's room for further rate hikes may narrow further. ⑷ Additional viewpoint: Reduced political constraints do not equate to a policy shift; core inflation stickiness and employment data remain the primary criteria for the Fed to formulate its interest rate plan.
