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

Odaily News Markets expect the Federal Reserve's monetary policy to differ significantly from that of the European Central Bank next year, as higher growth and inflation expectations in the United States will lead to a sharper divergence between the two major economies. 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, which will lead to a divergence in the easing cycles of the two." (Jinshi)