Forex news and the impact of Trump's policies on raising US interest rates

Forex News - During the election period of US President "Donald Trump", his tone was harsh and harsh, which increased many concerns about the future of the global economy, as he promised China and called it a currency manipulator and promised to withdraw from the NAFTA or Cors agreement, as well as placing severe restrictions on immigrants and not bringing them into the United States until it was known It is an example of racism, but with the passage of time the tone decreased until many investors doubted about the ability of US President “Donald Trump” to implement his economic plans or not.

This is in addition to the ideological difference between the legislators of the Republican Party, who have a majority in Congress, has become a major obstacle for the US president to implement his agenda and remained in a new crisis, and for this reason Trump began thinking to change his policy and is currently in some areas to increase the number of Democrats in an effort to dismantle the Republican bloc who make up the majority, but this will take more time, and the recent natural disasters in the United States have affected the limits of debt and spending until the discussion was extended to mid-December to ensure the smooth financing of emergency aid.

It is clear that the new policy of the US president to disintegrate Republicans is in a few areas, including health care and tax reforms, but it will currently be difficult to predict what will happen, but the main point is that a fragmented Republican legislature will lead to a dissident president and a minority of Democrats who are not Their trends are known, which will increase the concerns of investors, who will deal with caution and anticipation.

Forex news

Forex news

And if we look at the financial markets and prices, we find that the decision on tax reforms and the continuation of the gradual cancellation of the Federal Reserve’s decisions to raise the target for the Federal Reserve funds and reappoint the bank’s president “Janet Yellen” again are currently not in her favour.

It is worth noting that the tax reform program promised by Trump is on the minds of many and enjoys wide interest among investors, despite the ambiguity surrounding it. Therefore, it is necessary to resolve internal disputes between members of Congress and between parties in order for the program to be passed by a majority.

The US economy is due to release a retail sales report, and Redbook's weekly report on chain store sales is likely to help offset weak auto sales, and consumption is expected to remain steady at the same pace in the first quarter of this year.

Many analysts and financial market experts and those interested in following forex news warn of raising US interest rates for the third time in a row in the month of December, and expectations are increasing that the Reserve Bank will raise interest rates for the third time in a row until they reached at the end of last week at 27% and from It is expected to rise next week to reach 46% in a good sign that the US dollar will regain the gains it lost earlier.

Mohamed Abdel Khaleq

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