Analyst: The Federal Reserve's future interest rate cuts may depend on Trump's policies

IG Market Strategist Yeap Jun Rong wrote in a report that the trajectory of future interest rate cuts by the Federal Reserve may depend on the policies of elected President Trump, which are still unclear at this stage. He said that Trump's initial comments about tariffs did indeed sound very aggressive. However, he added, the extent to which these measures will be implemented is uncertain.

Yeap stated that as policy becomes clearer, the Fed might initially lean towards a shallower cycle of rate cuts. He also indicated that with the conclusion of Fed meetings, unless there is an unexpected decision from Bank of Japan, U.S stock market could gradually rise in last few weeks of 2024. However, due to lack of further catalysts reaching new record highs by year end could pose challenges.