The market tantrums at the suggestion of fewer rate cuts to come from the US Federal Reserve next year is further proof 2025 is likely to be considerably wilder than 2024.

Reserve Bank governor Michele Bullock faces a similar dilemma to that of US Fed chairman Jerome Powell as they both try to ensure the inflation dragon won’t again burst out of the cave. But Powell also has to manage a more unstable political environment dominated by Donald Trump’s return to the White House on January 20.