A police officer keeps watch in front of the U.S. Federal Reserve building in Washington, DC, U.S. on October 12, 2016. REUTERS/Kevin Lamarque
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After Donald Trump's unexpected victory in the U.S. presidential election, investors may refocus in the coming week on the health of the world economy and any signs that years of rock-bottom interest rates and fiscal austerity are coming to an end.Apart from a nearly across-the-board rise in sovereign bond yields, however, the markets have so far mostly shrugged off the election result – despite previous fears of a meltdown in the event of victory for Trump, who espoused fiercely protectionist positions on trade in his campaign.With the U.S. economy close to full employment – the jobless rate was 4.9 percent in October – Trump's election promise to cut taxes and upgrade the country's aging infrastructure could provide a big boost to both growth and inflation.Official U.S. data Thursday will likely show consumer price index inflation picked up slightly last month, up 0.4 percent on the month and 1.6 percent on the same month last year. The 10-year U.S. Treasury yield rose to 2.15 percent, almost 30 basis points above its levels around 1.86 percent just before the U.S. election Tuesday.A snap Reuters poll conducted in the 24 hours after the U.S. election result indicated no change at all in the expected future path for the policy rate.
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