Where there was discord, Donald Trump has remarkably brought harmony. He has brought peace between the markets and Janet Yellen, as traders at last appear to believe her forecast for interest rates over the next year.
The Federal Reserve says it intends to raise rates three times next year, and the market implicitly, through Fed Funds futures, puts the chance of this happening at almost exactly 50 per cent. This follows five years of the Fed’s current attempt at transparency in which markets have persistently and successfully bet that rates will stay stuck near zero, whatever Ms Yellen may tell them.
It is the sharp change in psychology that came with Mr Trump’s election victory that has at last brought the rate markets and the central bank in tune with each other.