Trump Picks Kevin Warsh As Next Fed Chair | Real Yield 1/30/2025

• President Trump nominated Kevin Warsh as the next Fed Chair, praising him as a 'very good guy' who 'wants to cut rates'.
• Warsh's past views include wariness of inflation, criticism of low interest rates and quantitative easing (QE), and a desire for a smaller Fed balance sheet.
• Market analysts are divided on whether Warsh will maintain a hawkish stance or align with the administration's dovish preferences, with some calling his 'newfound dovishness' suspect.
• The 2-Year Treasury Yield saw a slight decline, and the yield curve steepened, indicating some market expectation of lower rates but overall mild reaction due to uncertainty.
• January saw record high-grade sales ($208.8B, 5th highest ever) and busy leveraged loan issuance ($165B, 7th busiest month), with strong demand for high-quality corporate debt.

The video discusses President Trump's nomination of Kevin Warsh as the next Fed Chair, analyzing his past policy views and the potential market implications. Analysts offer mixed opinions on Warsh's stance on monetary policy, particularly regarding interest rates and the Fed's balance sheet, while Trump expresses strong confidence in his pick. The market reaction to the news is noted as relatively mild, reflecting uncertainty about the future direction of Fed policy.