Democratic sweep could constrain Trump’s Fed plans as rate cuts remain uncertain, Bitunix says

Stronger congressional oversight could limit Trump's influence over Fed appointments, while resilient labor data reduces pressure for monetary easing. Democrats’ takeover of Congress could limit President Donald Trump’s influence over Federal Reserve appointments, but resilient US employment data may keep interest rate cuts out of reach, according to Bitunix analysts. In a Thursday market update, the analysts said Democratic control of the Senate would give lawmakers greater authority to challenge Trump’s nominees to the Fed’s Board of Governors, complicating his efforts to reshape the central bank. The Senate Banking Committee, which is expected to be led by Senator Elizabeth Warren, could also increase scrutiny of Fed Chair Kevin Warsh and the transparency of monetary policy decisions. Markets initially welcomed the election results on Wednesday, with the S&P 500 gaining 1.6% and the Dow Jones Industrial Average advancing 3% after Trump signaled a willingness to work with Democrats. However, by Thursday morning, risk assets began tumbling, with the S&P 500 and Nasdaq falling sharply alongside Bitcoin as selling pressure intensified across technology stocks and crypto mark...