With Trump 2.0 back, the market is once again looking forward to the major policies Trump may introduce.

On Sunday, Stefan Gratzer, head of institutional wealth management at J.P. Morgan Chase in Switzerland, said the first two years of his second term could be “quite influential” if Trump makes policy changes to taxes, regulations, and cryptocurrencies.

The market is generally optimistic that Trump's policy promises of tax cuts and deregulation will bring a new round of growth to the current round of the US stock bull market, the credit market will also usher in healthy fundamentals, and the Federal Reserve is inclined to continue to maintain an easy monetary policy.

Tax reduction plans are key

Trump's victory completely ignited the coin industry. Bitcoin broke through 0.081 million US dollars, and the market value of Ethereum surpassed the Bank of America. Some analysts believe that this wave of rise may have just begun and is expected to continue until Trump takes office. Gratzer said:

“The one thing that's really unique about Trump's policies is cryptocurrencies, so let's wait and see how this develops. There is a lot of discussion about deregulation right now, which is clearly beneficial to banks.”

Gratzer also said that Trump's tax cut plan is key.

“If you buy the company's shares, you're clearly buying their future earnings minus taxes. If the tax rate is lower, your share price will rise.”

Currently, the Republican Party regained control of the Senate in last week's election and is expected to maintain a majority of seats in the House of Representatives. Gratzer said, “It's clear that both the House and Senate are on his side now. But after the 2026 midterm elections, it may not be that easy to do these things.”

The outlook for the credit market is positive in the short term after the election

The sharp rise in private credit in recent years has sparked discussions about increased regulation and scrutiny. Morgan Stanley analyst Vishwanath Tirupattur believes that with the Trump administration coming to power, the new system will focus on deregulation. This increases the possibility of unleashing “animal spirits,” thereby boosting corporate transactions.

According to Tirupattur, the current enterprisemergers and acquisitionsThere is still plenty of room for growth in activity compared to the size of the economy. Especially when the credit environment is relaxed, it is easier for companies to obtain financing. Although debt-funded mergers and acquisitions may start relatively slowly, given the continued decline in interest rates, this growth momentum is expected to accelerate in the future.

The rise of yield buyers (mostly life insurance companies) has been an important factor driving the credit market over the past few years. In an environment of high interest rates, sales of fixed annuity products increased dramatically, injecting a large amount of capital into the credit market.

Tirupattur predicts that by the end of 2025, the policy interest rate will be around 3.5%. This means that policy interest rates will be high enough to maintain the strong momentum of fixed annuity sales and maintain the demand for credit instruments from yield buyers.

Therefore, with the entry into force of the new policy system, the short-term set-up of the credit market after the general election is healthy. In the medium term, uncertainty about credit fundamentals is likely to expand as tariffs are likely to have a negative impact on growth and inflation.