Commodity prices see mixed trend last week following Trump’s win
Date
11/11/2024 7:56:39 AM
(MENAFN) Commodity prices experienced a mixed trend last week following the election of Republican Donald Trump as the 47th president of the United States on November 6. While the demand for the US dollar rose, Trump's economic policies are expected to slow the decline of inflation in the near future.
The increase in the US Dollar Index put pressure on asset prices, influencing the broader market. Analysts have warned that Trump's policies, especially his focus on tariffs, could disrupt international trade, adding additional pressure on both asset prices and the commodity market.
The potential inflationary impact of Trump's approach may lead the Federal Reserve to slow down its interest rate cuts, contrary to earlier expectations. This uncertainty has been a contributing factor to market volatility.
The Fed's decision to lower interest rates by 25 basis points in November, bringing them to a range of 4.50 percent-4.75 percent, was in line with predictions. While inflation remains somewhat elevated, it is gradually trending toward the Fed’s 2 percent target. Federal Reserve Chair Jerome Powell emphasized that the outcome of the presidential elections will not alter the central bank's policy stance in the short term.
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