The increasing reduction of US interest in announcing Trump's fees

The unrest is still distributing in the markets due to customs duties imposed by US President Donald Trump, and traders increase their expectations that the Federal Reserve will then lower interest rates. Financial markets dealing with short -term financial instruments show that forecasts will now lower interest rates by 100 basis points by the end of the year – the equivalent of four discounts each by 25 basis points – an increase of about 75 basis points before announcing the fees. The mortgage returns dropped to less than 4% on Friday to draw the lowest level since the election day, as it was spread by 3.95%. The US job report with the continued decline in global financial markets after US President Donald Trump announced on Wednesday about customs duties, the attention of investors in bonds later turns to US employment report and the speech of federal reserve president Jerome Powell in search of indicators on the state of the US economy, Facilitation of monetary policy. The markets are almost fully considered for the likelihood of a quarter of a percentage interest rate by June. “The market will find it difficult to not expect further reducing interest by the federal as long as the risk and anxiety continues. At this stage, I think they will be careful in giving strong signals to the markets Due to the inflationary problem that may carry on customer. Reserve Officials Said that the Strong Labor Market and Persistent Inflation Means That They Can Stay On Their Position Unchanged, Even with the Impact of the Customs Duties Announced by Trump on the Confidence of Consumers and Companies. Waiting about three hours after issuing the work report will be addressed to Powell, which will talk about economic expectations about a public event. Jay Bari, Strategic, wrote in a research note on Thursday in Jay Barry: “We see no signs of falling demand for US government bonds or an increase in the supply of US equities.” However, some in the market expressed concern about the possibility that US government bonds from outside the United States would no longer buy effects. The effects of Trump’s fees that economic experts generally expect to increase customs duties to inflation and slow down the growth of the economy, which keeps the Federal Reserve in anticipation. The discussion on the course of interest rates escalated to the announcement of customs duties. Although Morgan Stanley is not expected to reduce interest this year, after it is expected to be reduced once in the past, suggesting that the risks of inflation, the Swiss Wealth Management Department at the Swiss Bank “UBS”, expect more cash facilitation this year. Vinyer Bhansali, investment employee and founder of Longhail Alpha, said he buys two years of bonds and sells bonds for 30 years, a trade known as ‘the curve tightened’. It is a bet that the slowdown in the economy will push the Federal Reserve to lower interest rates, while high inflation will lower the performance of long -term effects. The increasing bet in the market is reflected, as the difference between the bonds has expanded two years and the thirty -year bonds on Thursday to 75 basis points, which is the highest level in three years. Bhansali concluded: “The spread of possible results has become more flat, which means it has become difficult to predict. Any scenario can happen now.”