Fed, Powell and scott bessent
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Speculation that President Donald Trump will eventually tap a dovish successor to Federal Reserve Chair Jerome Powell is feeding into a bullish tilt in Treasury options.
The Treasury secretary also stated his preference that Powell step down from the Fed entirely when his term ends. “Traditionally, the Fed chair also steps down as a governor."
As speculation swirled Wednesday that President Trump might fire Federal Reserve Chair Jerome Powell, investors scrambled to adjust their strategies, despite Trump later downplaying the possibility, Bloomberg News reported Sunday.
Bond traders are boosting bets that the Federal Reserve will cut interest rates more aggressively next year, as speculation mounts that an eventual change of leadership at the central bank will deliver the easier monetary policy that President Donald Trump is demanding.
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"What we need to do is examine the entire Federal Reserve institution and whether they have been successful," Bessent told CNBC's Squawk Box.
The Federal Reserve's] hesitancy to cut rates, I think, is actually … quite a mark against them,” former Fed governor Kevin Warsh said.