Institutional: Trump victory expected to accelerate global monetary policy response
Expectations of a Trump election victory should lead to weaker global growth and a brief spike in inflation, and potentially higher tariffs will also put pressure on trade, with major economies with large trade surpluses with the U.S. likely to be the first to be affected, according to Marcelo Assalin, head of William Blair's Emerging Markets Debt team. To offset higher tariffs and global economic vulnerability, Marcelo Assalin and his team expect the global monetary policy response to accelerate, triggering a decline in global interest rates. The outcome of the U.S. presidential election will not change expectations for lower global interest rates and improved liquidity conditions in the second half of the year.
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