""I'll be announcing a new Fed chairman in the not-too-distant future. I think he'll do a very good job,""
""Problem is, they change once they get the job. You know they're saying everything I want to hear and then they get the job ... and all of a sudden, it's 'let's raise rates a little.'""
""The Fed doesn't really set interest rates," JPMorgan Chase CEO Jamie Dimon said in Davos. "What happens if inflation goes up? They raise interest rates. What happens if inflation goes down? They reduce interest rates. They are a follower.""
The TACO trade — the wager that Trump Always Chickens Out when his rhetoric affects markets — intensified as markets reacted to presidential pressure on the Fed. Trump urged lower rates at Davos, pledged to announce a new Fed chair, and said the U.S. should pay "the lowest interest rate of any country in the world" on its debt. The Fed cut rates by 1.0 percentage point in 2024 and 0.75 points in 2025, yet the 10-year Treasury yield rose from 3.7% to 4.27%. Rising growth prospects and higher inflation expectations have pushed longer-term yields up, limiting the Fed's ability to deliver the president's desired lower long-term borrowing costs.
Read at Axios
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