The Federal Reserve cut interest rates by 25 basis points in November, with Fed Chair Jerome Powell indicating the central bank will continue to determine its next move by monitoring economic data for signals of inflation.

Barclays fixed income strategist Michael Pond joins Market Domination hosts Julie Hyman and Josh Lipton to discuss how to navigate the bond market (^FVX, ^TNX, ^TYX) after former President Trump’s reelection.

“What we do think the market should be pricing in is more concern over longer-term structural inflation risks because of the Trump win,” Pond says.

The strategist explains that “right away the market prices in higher concerns over tariffs, pushing through to higher inflation next year. That was almost instantaneous overnight. And the front end moved about 40 basis points higher when it came to what it's expecting for inflation next year.”

However, Pond believes "the market showed no concern that policies such as higher deficits potentially [and] potential for a less credible central bank or significant slowing in immigration, which leads to a tighter labor force."

To watch more expert insights and analysis on the latest market action, check out more Market Domination here.

This post was written by Naomi Buchanan.