On his first day in office, Trump did not impose tariffs, and the Fed rate futures market increased its bet on a 4 basis point rate cut by the Fed this year.

BlockBeats News, January 21st, according to foreign media analysis reports, Trump did not impose tariffs on his first day in office. He only briefly mentioned tariffs in his inaugural speech, but lacked initial clear details. The lack of details on the tariff measures made investors more dovish about the outlook for U.S. interest rates, as rate futures increased their bet on a Fed rate cut this year by 4 basis points, expecting the Fed to cut rates to 3.9% by December. As a result, the yields on U.S. 2-year and 10-year Treasury bonds have declined.

However, the tariff threat remains looming. Trump later stated that he is considering imposing tariffs on Canada and Mexico, causing market jitters and investor concerns about a resurgence of inflation. Analysts warn that even a cautious tariff approach may still trigger inflation concerns and keep U.S. rates elevated for a longer period. (FXStreet)