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Analysts: Trump's victory could reduce the likelihood of the Federal Reserve cutting interest rates

Sonja Marten, analyst at the Bundesbank, said in a note that a Trump victory could benefit the dollar by reducing the likelihood of a Fed rate cut. Trump's tariff and immigration plans are expected to stoke inflation, while tax cuts would lead to a short-term economic boom, she said. "All of this would significantly reduce the likelihood of a Fed rate cut. In this case, expect a clear and positive response from the dollar."