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Santa rally on hold as Federal Reserve mulls Trump 2.0

Traders have slammed the brakes on the sharemarket’s Santa rally, concerned higher tariffs promised by US president-elect Donald Trump could slow the pace of interest rate cuts from the Federal Reserve.

Last week, US markets slipped from record highs and Australian shares touched a one-month low as a wave of profit-taking swept through equities in the lead up to the central bank’s meeting this Wednesday (Thursday AEDT).

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