A few days ago, Trump made a statement on Air Force One, saying he had already locked in his pick for the new Fed Chair. As soon as this news broke, the 10-year US Treasury yield instantly crashed below 4%. What is the market sensing here?
Simply put, there’s a particularly interesting contrast right now. The current chair, Powell, has been harshly criticized by Trump for refusing to cut rates. But the new candidate, Hassett, is one of Trump’s closest confidants. As soon as the market heard he might take over, it immediately voted with its feet—Treasury auctions became incredibly hot. Isn’t th
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