Let us see when Warsh gets in and whether he will follow the president's orders to cut interest rates.
For all the reactions that Trunp's announcement brought (precious metal big slump, equities going up) expecting that the new fed chair is a inflation hawk.
Once he acquiesce to the president's pressure, the fed's supposed independence (because of th inflation hawk) illusion will pop and markets will be in chaos.
We will see.
80% Rate Cut By June: Will S&P 500 Extend Gains?
US January CPI surprised to the downside, with headline inflation rising just 0.2% MoM (vs. 0.3% expected) and 2.4% YoY, the lowest since last May. Core inflation also came in softer than forecast, pushing market pricing for a Fed rate cut before June to 80%.
Treasury yields slipped as traders pulled forward easing bets, while equities initially cheered the cooling inflation print.
Does softer CPI reflect higher possibility of rate cuts?
Will the S&P 500 extend gains on rate-cut optimism?
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