Investing.com - Markets believed the Federal Reserve was still on course to raise interest rates next month despite a stunning upset by Republican Donald Trump in the U.S. presidential election.
Odds for a rate hike at the Fed's December 13-14 meeting stood at 81.1% early Thursday, according to Investing.com's Fed Rate Monitor Tool. Expectations fell to as low as 43% a day earlier amid fears over what a Trump win would mean for the U.S. economy.
Those fears eased as market players opted to focus on Trump's plan to boost fiscal stimulus, which investors believe will usher in higher economic growth and rising inflation.
Also of note, a Trump economic adviser confirmed late Wednesday that the newly elected president was not seeking Fed chair Janet Yellen’s resignation despite recent attacks on her character, according to a report from The Wall Street Journal.
The source did say that Trump was unlikely to nominate Yellen for a second term when her current one expires on February 3, 2018 because he would prefer to choose someone more aligned with his thinking.
The dollar was recently up 0.2% against a basket of major currencies at 98.82, after climbing to 99.06 earlier, a level not seen since October 25.