Fed to underpin EM whoever wins White House race

By Mariam Meskin, Oliver West
29 Oct 2020

Donald Trump and Joe Biden each present a different set of medium-term risk factors for emerging markets if they win next week’s US presidential elections. But the US Federal Reserve’s promise to keep rates lower for longer — combined with unprecedented monetary policy support from other developed market central banks — should provide a cushion that is more relevant to EM bonds than the Oval Office’s occupant. Mariam Meskin and Oliver West report.

Joe Biden is expected to claim victory at next week’s US presidential election, and the odds of a Democratic sweep in both houses of Congress is also improving. After four years of a Trump presidency that has decreased policy predictability, increased tensions with China, accelerated de-globalisation trends, and ...

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