Trump's decision to drop Hassett has shaken the bond market, causing expectations of interest rate cuts to diminish.
due to Trump suggesting nominating someone other than National Economic Council Director Hassett to replace Powell, U.S. Treasury prices fell, and traders reduced their expectations for two rate cuts in the U.S. in 2026. The decline in U.S. Treasuries pushed the two-year yield up by 5 basis points to 3.61%, reaching the highest level since the Fed's last rate cut in December. After Trump's comments on Hassett, short-term interest rate contracts reflected a decreased probability of the Fed cutting rates by 25 basis points twice this year. Meanwhile, the Treasury market continues to be troubled by the December employment data released a week ago, which led Wall Street banks that had previously predicted a rate cut at the Fed's next meeting on January 28 to abandon that view. Morgan inflation economist predicts that despite changes in the Fed leadership, the Fed will not cut rates further. John Fath, managing partner of BTG Pactual Asset Management USA, stated: "Previous trades were bets that whoever serves as the next Fed chair would be dovish. This trend has reversed in the past few days."
due to Trump suggesting nominating someone other than National Economic Council Director Hassett to replace Powell, U.S. Treasury prices fell, and traders reduced their expectations for two rate cuts in the U.S. in 2026. The decline in U.S. Treasuries pushed the two-year yield up by 5 basis points to 3.61%, reaching the highest level since the Fed's last rate cut in December. After Trump's comments on Hassett, short-term interest rate contracts reflected a decreased probability of the Fed cutting rates by 25 basis points twice this year. Meanwhile, the Treasury market continues to be troubled by the December employment data released a week ago, which led Wall Street banks that had previously predicted a rate cut at the Fed's next meeting on January 28 to abandon that view. Morgan inflation economist predicts that despite changes in the Fed leadership, the Fed will not cut rates further. John Fath, managing partner of BTG Pactual Asset Management USA, stated: "Previous trades were bets that whoever serves as the next Fed chair would be dovish. This trend has reversed in the past few days."
Trump: I want Hassett to remain in her current position.
U.S. President Trump: (Talking about Hassett and the Federal Reserve) The Director of the White House National Economic Council, Hassett, performed well on TV, and I want him to continue in his original position. We will wait and see. Federal Reserve officials don't talk much, but Hassett is very articulate.
U.S. President Trump: (Talking about Hassett and the Federal Reserve) The Director of the White House National Economic Council, Hassett, performed well on TV, and I want him to continue in his original position. We will wait and see. Federal Reserve officials don't talk much, but Hassett is very articulate.
Trump wants Hassett to stay in his post; spot gold and silver prices plunge briefly.
U.S. President Trump on Friday spoke about Hassett and the Federal Reserve position, saying he wants to keep Hassett on the National Economic Council (NEC). Trump said, "Hassett performs well on TV, and I want him to continue in his current position. We shall see." Trump also added, "Federal Reserve officials don't talk much, but Hassett talks a lot." After Trump made these remarks, the US Dollar Index (DXY) quickly surged over 20 points, spot gold and silver plunged briefly, now trading at $4550/ounce and $87.5/ounce respectively.
U.S. President Trump on Friday spoke about Hassett and the Federal Reserve position, saying he wants to keep Hassett on the National Economic Council (NEC). Trump said, "Hassett performs well on TV, and I want him to continue in his current position. We shall see." Trump also added, "Federal Reserve officials don't talk much, but Hassett talks a lot." After Trump made these remarks, the US Dollar Index (DXY) quickly surged over 20 points, spot gold and silver plunged briefly, now trading at $4550/ounce and $87.5/ounce respectively.
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