Trump's abandonment of Hassett leads to a significant 'shrinkage' of expectations for Fed rate cuts Odaily Planet Daily News: Due to Trump's suggestion to nominate candidates other than National Economic Council Director Hassett to replace Powell, US bond prices have fallen, and traders have reduced their expectations for two interest rate cuts in the United States in 2026. The decline of US treasury bond bonds pushed up the two-year yield by 5 basis points to 3.61%, the highest level since the Federal Reserve last cut interest rates in December. After Trump's comments on Hassett, the short-term interest rate contract reflects a decrease in the probability of the Federal Reserve making two 25 basis point rate cuts this year. At the same time, the treasury bond bond market continued to be troubled by the December employment data released a week ago, which prompted Wall Street banks that had previously predicted that the Federal Reserve would cut interest rates at the next meeting on January 28 to abandon this view. Morgan inflation economists predict that although the leadership of the Federal Reserve is changing, the Fed will not further cut interest rates. John Fath, Managing Partner of BTG Pactual Asset Management in the United States, said, "The previous transaction was a bet that whoever becomes the next chairman of the Federal Reserve will be dovish. This trend has reversed in the past few days