Inflation is expected to increase in the United States and globally if President Donald Trump fulfills his campaign promises to reduce taxes, tighten immigration policies, and raise tariffs on all imported goods. With a Republican majority in the US Senate and Trump's projected re-election, he is in a strong position to implement his potentially significant economic agenda.
Following Trump's victory, US stock markets opened with significant gains, and the dollar strengthened against major currencies as traders anticipate higher domestic inflation, leading to fewer interest rate cuts by the Federal Reserve. The anticipation of higher interest rates tends to attract more foreign capital seeking greater returns, boosting the value of the dollar.
