The November Federal Open Market Committee (FOMC) meeting is beginning, with analysts expecting a 25-basis point interest rate cut. The morning's election results came too late to impact this decision, but the potential Republican sweep and resulting market moves make December's outcome uncertain. Fed funds futures markets are predicting a 99.2% likelihood of a 25bps cut tomorrow and a 67% chance of an additional cut in December. Donald Trump's victory could impact the Fed's leadership and mission, as he plans tax cuts and tariff increases that may increase inflation and the federal deficit. Trump has stated he will not reappoint Chair Jerome Powell, giving him the opportunity to replace the central bank head. He will also be able to nominate a replacement for Fed Governor Adriana Kugler. The press conference tomorrow is expected to address questions regarding the election and its impact on future policy.



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