Trump hints at nominating new economic advisor; US Treasury prices fall, expectations for interest rate cuts diminish.
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TL;DR
Trump's hint at a new economic advisor nominee, not Hassett, led to falling US Treasury prices and reduced market expectations for two Fed rate cuts in 2026, pushing yields higher.
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ChainCatcher reports that, according to Jinshi, US Treasury prices fell as Trump hinted at nominating someone other than National Economic Council Director Hassett to succeed Powell, and traders reduced their expectations for two US interest rate cuts in 2026. The decline in US Treasuries pushed the two-year yield up as much as 5 basis points to 3.61%, the highest level since the Fed's last rate cut in December. Short-term interest rate contracts reflect a decreased probability of two 25-basis-point rate cuts by the Fed this year.