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US Elections to trigger further volatility
Apart from mid-September rate cut expectations, all eyes are on US elections to be held in November. Both the candidates have announced their prospective policy routes for the economy.
Democrats (Kamla Harris) are promising less inflationary route for the economy by Price control and affordable housing. Markets may react negatively to their proposal for higher taxes as they propose to hike corporate taxes from current 21% to 28%.
Republicans are proposing cutting taxes to 15% amid protectionist trade policies at the cost of higher fiscal deficit. On the other hand, They are also looking at boosting economy by encouraging domestic manufacturing.
Thus we expect volatility to increase going into US elections in mid- November.
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