Analysis: If Trump implements his policies, the monetary policies of the US and Europe may diverge greatly

The market expects the Fed's monetary policy to be significantly different from that of the European Central Bank next year, as higher economic growth and inflation expectations in the United States will cause the differences between the two major economies to intensify. Market pricing shows that by the end of next year, the Fed will cut interest rates by only half as much as the European Central Bank, which is facing weak economic growth and below-target inflation. Jennifer McKeown, chief global economist at Capital Economics, said: "We expect the Fed to take a fairly cautious approach due to rising inflation risks, while the ECB will respond strongly to economic weakness. reaction, which will lead to the divergence of the two easing cycles.” (Golden Ten)