Inflation Concerns Rise with Trump Policy Projections

Options traders are preparing for significant volatility in the Indian stock market following the upcoming US elections, using strategies like buying strangles on the NSE Nifty 50 Index. Economists express concerns about potential inflation spikes based on Donald Trump's projected economic policies, which include tariffs and pressure on the Fed to cut rates, potentially reigniting inflation. While inflation has been easing towards the Federal Reserve's target due to factors like healed supply chains and increased workforce, a new Trump term could magnify inflation risks. The Reserve Bank of Australia remains cautious, focusing on underlying inflation trends and not expecting immediate interest rate cuts despite forecasts of slowing inflation. These economic dynamics unfold amid global economic uncertainty, with both US and international markets poised for shifts post-election.