Do you think there are apprehensions that Trump may not be able to push through his spending plans, and this is phasing out the possibility for him to enact a policy, which would reflect in his next year agenda? Without a robust fiscal spending policy in place, it seems unlikely that US economy would rid itself out of the clutches of a slowdown in the long run, even though in the short term an interest rate hike may drive up the US$, due to an covered interest rate arbitrage.
It seems that Trump is somewhat shielded from any debri caused by interest rate hike impositions and could have the last laugh, jeering, “I told you so,” if the economy were to slowdown in case of a hike. Thus, he has to be affirmative on which side to take, because the debate on whether or not to raise interest rates, has assumed a political dimension because the FED stands to lose credibility if it stays pat when job markets have remained solid. Trump also accused Yellen when she was not raising interest rates that could be a market booster but surely counterproductive over the long haul. For example, investment sentiment seemed buoyed with Trump’s plan to reduce taxes, regulation and increasing spending on infrastructure making which does make a solid case for a hike!