Big Names in the Running for the Fed Chair!
Three “heavyweight” names are emerging behind the scenes:
1️⃣ Former NY Fed president (advocate of measured tightening)
2️⃣ Former Treasury official beloved by the markets (moderate dove)
3️⃣ Reform-minded academic (hawkish on high inflation pressures)
🔍 Potential impacts:
Short-term: Increased pricing diversity in the options market regarding the interest rate path.
Medium-term: The US 2-10 year spread could shift direction quickly depending on the nominee's stance.
Risk assets: Hawkish candidate ⇒ profit-taking in growth stocks. Dovish candidate ⇒ rally expectations in crypto and tech stocks.
Will Trump lift the veil of uncertainty with an early announcement and set the direction for the market?
👇 Share your thoughts!