Can Trump strike the right balance on monetary policy?

If the Fed becomes too hawkish too soon, it will undermine the goal of creating jobs and boosting blue-collar incomes

When Donald Trump defeated Hillary Clinton in the US presidential election, the market's immediate negative response was to be expected. But by the next day, the market's downward turn had already reversed itself.

US equities and bond yields rallied after Trump delivered a victory speech that seemed to signal that he was tacking to the centre, which investors had originally expected him to do this summer, after he won the Republican nomination and entered the general election campaign.

Related: Joseph Stiglitz: what the US economy needs from Donald Trump

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