Fed rate-hike odds near 100% in anticipation of 'Trumpenomics'

London

ANALYSTS spent early November warning a Trump victory in the US presidential election would make the Federal Reserve less likely to raise interest rates. What happened instead is that it made a December increase a near certainty.

Traders assign about a 94 per cent probability, the highest level this year, to a Fed boost at its final meeting for the year on Dec 13-14, futures contracts indicate. Donald Trump's spending plans are driving speculation the Fed will pick up its pace of rate increases as inflation expectations climb.