Fed and Trump Weekly Decisions: Risk or Stability?

There are many important financial events to look forward to in the coming week, the main one being Trump's impact on market dynamics. Investors will be closely watching potential tariff hikes on goods from Mexico, Canada and China that could be introduced on February 1.

Markets in the US had previously only attacked Trump using psychological pressure to achieve the best conditions (based on the experience of his first term), but the situation changed after Trump announced on Sunday the immediate introduction of tariffs on goods from Colombia (due to the incident with the plane). This decision undermined the economy and led to a decrease in risk in the world, which in turn led to a rise in the dollar on Monday at the opening of trading on Monday.

The key event of the week, the Fed meeting on Wednesday also attracted attention, as it includes not only the election decision, but also Powell's press conference, where questions about Trump's influence on monetary policy are discussed (the president will now give his comment on the regulator's decision).

Markets will be particularly sensitive to Powell's comments on the possibility of rate cuts in March and the end of quantitative easing (QT).

Elsewhere, these markets are forecasting a rate cut in Canada, but additional US tariffs could weigh on inflation contagion. The ECB is also cutting rates due to a slowing economy. In addition, reports such as GDP and inflation will be important, as well as important US Treasury auctions.

There are also important reports to be released this week, including Q4 US and Eurozone GDP, as well as US RCE inflation. Big Tech earnings from Meta Platforms (#META), Apple (#AAPL), Microsoft (#MSFT), and Tesla (#TSLA) will be important.⁠