The Federal Reserve is likely to abandon its efforts to guide interest rates higher and instead would pare them back if Donald Trump is elected president, Citigroup Chief Economist Willem Buiter said Friday.
"Our current expectation is that we will get one rate increase this year. I would make that contingent on who wins the election myself," Buiter told CNBC's "Worldwide Exchange."
"It is my personal view that we only get a rate increase — a necessary condition is that Mrs. Clinton is the next president. My view, if Mr. Trump is the next president, the next move by the Fed will be a rate cut," he said.
A Trump presidency would force the Fed to anticipate "the high risk and possibly the reality" of a trade conflict, as well as the "massive, adverse supply shock" to the labor market caused by the Republican nominee's proposed immigration policies, Buiter said.
Trump has said he will deport millions of Mexican immigrants and impose a ban on Muslims entering the United States.
The generalized uncertainty about Trump's policies would also hit capital spending as businesses sit on their hands, Buiter added.