Institutions: Fed to adopt gradual and cautious policy in the short term

Trump's victory won't change the prospect of a 25 basis point Fed rate cut at this week's meeting, but going forward the central bank ‘will need to remain vigilant,’ writes Gregory Faranello, head of U.S. interest rates at Amerivet Securities.Faranello says: ‘Wednesday's election results only reinforce our view of gradualism, caution, lack of forward guidance and open-mindedness.’ In reaction to the U.S. election results, investors sold U.S. Treasuries, pushing yields higher.The 10-year Treasury yield is now at 4.451 per cent, while the 2-year yield is at 4.287 per cent.