Markets betting on short-term drop, long-term surge in rates after Fed board shakeup

Date:

Share post:


“Thank you President Trump for your commitment to stopping mortgage fraud and following the law,” Pulte said. “If you commit mortgage fraud in America, we will come after you, no matter who you are.”

Jamie Cox, managing partner at Harris Financial Group, told CNBC that Cook’s removal is another step in Trump’s effort to remake the Federal Reserve.

“The President is going to remake the Board of Governors of the Federal Reserve over the next year, and he’s doing so in very unconventional ways – we’ve had a resignation and now a termination, opening the door to accelerate this change,” Cox told CNBC. “Trump has essentially usurped the Fed’s forward guidance function for the time being and is telling markets lower rates are coming, which is being manifest in a steeper yield curve, with short-term treasuries dropping like a rock.”

Claudia Sahm, economist and creator of the recession indicator, the Sahm rule, agreed on her X account that it was about Fed control. She criticized the move.

“This is a new attempt of the administration to gain more control over the Fed,” Sahm said on X. “They’re pulling as many different levers as they can find to get that control. Do not forget. It’s about control of the Fed. This is a very dark day.”



LEAVE A REPLY

Please enter your comment!
Please enter your name here

Related articles

Meta Was Just Ordered to Pay $25 Billion for Misleading Users. It’s a Warning for Every Business

A court just put a ten-figure price on the gap between what a company promised about data...

We Invested £200M In Footballers Using ONLY Their Stats 😬

eToro is a multi-asset investment platform. The value of your investments may go up or down. Your capital...

Senate Democrats Want To Double TEACH Grants And End The Student Loan Penalty

Key Points The Diversify Act would raise the annual TEACH Grant from $4,000 to $8,000 and double lifetime...