IG market strategists said that Trump's election as US president directly led to a drop in expectations of rate cuts by the Federal Reserve before 2025. The potential 'red wave' means there is little resistance to his tax cuts and spending plans, combined with his stance on raising tariffs. The strategist said, 'Overall, this may complicate the Fed's efforts to combat inflation, and we may expect the Fed to be more cautious in future easing processes, which suggests upward pressure on yields and a stronger dollar.' Traders now believe that there is a 68% chance of a 25 basis point rate cut by the Fed in December, compared to about 83% before Trump's victory.