The US Presidential election is in full swing with Donald Trump making considerable headway in his bid for the White House. Yet, despite the distance, the outcome has implications closer to home than one might think. Many votes remain uncounted but a Trump victory looks virtually guaranteed at this stage, with many US TV networks calling the election for Trump already and the result will influence your personal finances.
Some economists suggest that a Trump win may lead to lower US GDP and heightened inflation due to his policies on higher import tariffs and restricted immigration. Speaking to i newspaper, Paul Dales from Capital Economics conjectured that the funds rate from the US Federal Reserve would be roughly 0.5 percentage points more than it would under different circumstances.
He elaborated: "That would put some upward pressure on UK gilt yields and mean mortgage rates for UK households are a bit higher than otherwise. A more inflationary global environment may mean the Bank of England cuts interest rates by less than otherwise." Should the Bank of England opt for fewer rate cuts, mortgage rates could remain elevated for an extended period.
Peel Hunt, an investment bank, has released a report examining the potential impact of the US election on UK stock markets and domestically-based companies. This is significant for many UK residents, whether they own shares directly, through an ISA, or via their pension invested in equities, reports the Mirror . The report also co.