Trump has changed markets’ expectations of Fed’s moves – researchers

Goldman Sachs and NBER both study implications of Trump’s tweets on trade and the Fed

Donald Trump

US President Donald Trump’s Twitter announcements threatening tariffs have a significant influence on markets’ expectations of the Fed’s interest rate target, a paper published by Goldman Sachs finds.

In contrast, Trump’s tweets criticising the Fed and applying persistent pressure for more accommodative monetary policy have much less of an impact on rate expectations, Goldman Sachs chief economist, Jan Hatzius et al, find.

The findings suggest that market participants do not perceive the

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