This article discusses the impact of Donald Trump’s return to the White House on the markets, particularly in terms of fixed-income liquidity. Sarah Harrison, senior portfolio manager at Allspring Global Investments, shares her insights on how fiscal and monetary policies in the US are conflicting, with potential inflationary policies being introduced by the Trump administration. Central banks like the US Federal Reserve and the European Central Bank will have to make decisions on whether to cut interest rates in response to these policies.
Harrison also provides her views on rates for the year ahead and advises desks on how they should be approaching this situation. It’s clear that the markets are in a state of flux, and it will be important for investors and financial professionals to stay informed and adapt to the changing landscape.
