Uncertainty in politics can cause markets to react, often increasing the risk premium leading up to the event outcome. This often settles as investors process the result and central banks should not be impacted in their rate cutting cycles. For the year, Northern Trust Asset Management expect two 25bps cuts from the FOMC, two more 25bps cuts from the ECB (total of three) and two 25bps cuts from the BoE, one in the summer and one more in Q4.
