Earlier this week, Fed chair Jerome Powell said the central bank was in 'no hurry' to cut rates, in part because of persistent inflation. Expectations for inflation's path forward have been less certain as of late, partly due to uncertainty over what President-elect Trump and a Republican Congress will end up enacting in terms of tariffs and tax cuts. Glenn Hubbard, Columbia University Russell L. Carson Professor of Economics and Finance, joins Julie Hyman and Josh Lipton on Market Domination to discuss what the Trump administration could mean for the Fed's next move.

"I think there's an argument for the Fed to pause, but the Fed could well cut," Hubbard says. "What's more certain is that the pace of rate cuts is likely to slow." Prior to his election win, President-elct Trump made it clear he believes the president should have the ability to weigh in on rates. Hubbard, who was chairman of the Council of Economic Advisors under President George W. Bush, points out that the president has other levers to pull when it comes to the economy. "I'm actually quite optimistic for good policy on tax, on regulation," Hubbard says, adding, "monetary policy is not the only game in town."

With Republican sweep in Congress, it's very possible Trump will be able to enact the tax cuts he promised on the campaign trail. Some economists have cautioned that extending the 2017-era cuts could have big implications for the US's deficit. Hubbard echos concerns about the deficit problem, calling it "significant and serious." But he doesn't expect President-elect Trump's tax bill to be a "huge blowout" to the deficit.

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This post was written by Kathleen Welch.