As 2024 is drawing towards the end, the U.S. market is gearing up for Donald Trump’s America-first agenda, featuring lower taxes and sweeping deregulation.
Trump has pledged the largest deportation of immigrants in American history, new tariffs on imports, a freeze on climate-related regulations, a remaking of federal health agencies and ideological changes in the education system. Now, he has the chance to deliver.
President-elect isn’t slowing down. He’s working relentlessly to lay the groundwork for his administration. The central theme for 2025? “America.” His vision focuses on domestic growth, fueled by tax cuts and widespread deregulation. Backed by a team of billionaires and entrepreneurs, Trump aims to supercharge the economy — even if it means risking a rise in inflation and higher interest rates.
Increased government spending could drive up consumer prices, potentially letting inflation spiral out of control. Inflation remains above the Federal Reserve’s 2% target, with November’s figure at 2.7%. And if inflation continues to climb, the Fed may reverse its guidance on lowering interest rates.
The U.S. dollar is eagerly anticipating the changes the new president will introduce. Over the past year, the dollar has been a dominant force, hitting new highs following Election Day.
The dollar index is near its peak for the year, boasting a 7% annual gain. Currently trading around 108.10, it’s just 0.3% below its 2024 high of 108.50.
Meanwhile, some traders are gravitating toward safe-haven assets, with a significant portion of activity focusing on gold. Gold prices have risen about 0.5%, nearing $2,630 and marking two consecutive days of gains.
During his first term, Trump implemented significant policy changes but often expressed frustration with bureaucracy slowing down his boldest plans. Now, armed with that experience, he expects his second administration to better navigate the complexities of federal agencies and policy-making processes, enabling a faster and more ambitious agenda.
Trump’s goals extend beyond simply undoing Biden administration policies. He aims to fundamentally reshape federal agencies and the policies they create