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Trump win may not derail rate hike

Wednesday, November 09, 2016 - 01:19

Donald Trump's victory in the U.S. presidential casts doubt on the timing of a rate hike, but a Reuters poll shows it still is likely. Bobbi Rebell reports.

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The Fed is likely to still raise rates in December despite the stunning upset by Republican Donald Trump in the U.S. Presidential election, according to a new Reuters poll. Roughly 85 percent of 62 respondents in a survey taken on Wednesday said the Fed would go ahead with the hike, which would be the first, and only in 2016. But there are some who disagree, saying the uncertainty buys the Fed some time. Jonathan Corpina, senior managing partner at Meridian Equity Partners. (SOUNDBITE) JONATHAN D. CORPINA, SENIOR MANAGING PARTNERS, MERIDIAN EQUITY PARTNERS INC., (ENGLISH) SAYING: "I do think that the Fed somewhat is welcoming this pause because they're not ready to raise rates. They've had opportunities before in the past, they never acted on it, so at this point I think it's gonna be a 2017 event." Trump's win also casts doubt over Fed Chair Janet Yellen's future. He accused the Fed of keeping interest rates low to help Democratic President Barack Obama, and indicated he might replace Yellen after her term ends in January 2018. That has led analysts to speculate on whether she would resign earlier. Also adding to the uncertainty for the Fed is the lack of detail in Trump's economic plans, including his stance on international trade agreements, tax policy, federal spending, and immigration policy.

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Trump win may not derail rate hike

Wednesday, November 09, 2016 - 01:19