Fed Rate-Cut Expectations Fade With Warsh Favored as Next Chair
The US Treasury Department building in Washington.
Photographer: Stefani Reynolds/BloombergTreasuries fell and traders trimmed their expectations for two US interest-rate cuts in 2026 as the market-implied odds ramped up that Kevin Warsh will be nominated to lead the Federal Reserve.
A slide in US government debt Friday picked up after US President Donald Trump said he’d prefer to keep National Economic Council director Kevin Hassett in his current role, suggesting that someone else will be tapped to succeed Federal Reserve Chair Jerome Powell.