By using this site, you agree to the Privacy Policy and Terms of Use.
Accept
IndebtaIndebta
  • Home
  • News
  • Banking
  • Credit Cards
  • Loans
  • Mortgage
  • Investing
  • Markets
    • Stocks
    • Commodities
    • Crypto
    • Forex
  • Videos
  • More
    • Finance
    • Dept Management
    • Small Business
Notification Show More
Aa
IndebtaIndebta
Aa
  • Banking
  • Credit Cards
  • Loans
  • Dept Management
  • Mortgage
  • Markets
  • Investing
  • Small Business
  • Videos
  • Home
  • News
  • Banking
  • Credit Cards
  • Loans
  • Mortgage
  • Investing
  • Markets
    • Stocks
    • Commodities
    • Crypto
    • Forex
  • Videos
  • More
    • Finance
    • Dept Management
    • Small Business
Follow US
Indebta > News > Traders bet on interest rate cuts from Jay Powell’s successor at the Fed
News

Traders bet on interest rate cuts from Jay Powell’s successor at the Fed

News Room
Last updated: 2025/06/28 at 9:14 AM
By News Room
Share
4 Min Read
SHARE

Stay informed with free updates

Simply sign up to the US interest rates myFT Digest — delivered directly to your inbox.

Traders are increasing their bets on US interest rate cuts after Jay Powell leaves the Federal Reserve next year, as the central bank chief faces a barrage of criticism from Donald Trump for moving too slowly in lowering borrowing costs.

Markets are anticipating at least five quarter-point cuts by the end of next year, according to futures pricing, compared with four at most a month ago. The change in expectations is partly down to rate-setters tempering their view on the inflationary effects of tariffs. But analysts say it also reflects the president’s constant haranguing of Powell as “Mr Too Late”, which has fanned expectations he will appoint a more dovish successor.

“The more notable shift over the past month is in cuts priced for the middle of next year, as the market seems to increasingly anticipate ongoing easing once the next Fed chair is in place,” wrote Matthew Raskin, head of US rates research at Deutsche Bank in a recent note to clients.

Trump said in a post on Truth Social on Wednesday that he had narrowed his search for the next Fed chair to “three or four people”. He added: “I mean [Powell] goes out pretty soon, fortunately, because I think he’s terrible.”

Treasury secretary Scott Bessent and Kevin Warsh, who served as a Fed governor during the 2008 financial crisis, are widely believed to be among front runners for the job. Fed governor Christopher Waller, who this week endorsed a rate cut as soon as July, is also under consideration.

“I think that the prevailing market wisdom is that whoever replaces Powell is going to be more dovish. It doesn’t mean that they will be non-responsive to the realities of the economy, but they may be more amenable to [lowering rates],” said Ian Lyngen, head of US rates strategy at BMO Capital Markets.

While candidates such as Warsh have historically been more hawkish than dovish, Lyngen said that might change in the current environment.

He said: “Trump has been extremely critical of Powell. The people who are under consideration are currently auditioning for the job. To look at prior performance and map it to future performance is not right in this instance.”

Expectations have mounted in recent months that the Fed may appoint a “shadow chair” in advance of the end of Powell’s term who could signal a more dovish direction on rates. The White House said a decision on Powell’s replacement was not “imminent”.

Comments from Fed policymakers have also stoked expectations of faster cuts. Governor Michelle Bowman joined Waller this week in saying she supports cutting rates as soon as July, citing lower-than-expected inflation.

The two- and five-year Treasury yields, which are sensitive to rate expectations, reached two-month lows this week as investors priced in the possibility of more rate cuts in the medium-term.

But Powell has pushed back against the possibility of a July cut and has not reacted to Trump’s repeated demands, largely because of inflation risks. At a speech in Congress on Tuesday, Powell said that cuts were off the table until the autumn, as the central bank was expecting to see the effects of Trump’s tariffs on prices in June and July.

Consumer price inflation accelerated slightly in May to a rate of 2.4 per cent, though the rise was smaller than economists had predicted.

Read the full article here

News Room June 28, 2025 June 28, 2025
Share this Article
Facebook Twitter Copy Link Print
Leave a comment Leave a comment

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Finance Weekly Newsletter

Join now for the latest news, tips, and analysis about personal finance, credit cards, dept management, and many more from our experts.
Join Now
Summertime sadness is a real thing

Unlock the Editor’s Digest for freeRoula Khalaf, Editor of the FT, selects…

Manufacturers plead for US tariff clarity before copper stockpiles dwindle

Global manufacturing executives are begging for clarity on Donald Trump’s tariff policy…

BCG earned more than $1mn for Gaza aid barge project

Boston Consulting Group was paid more than $1mn for work with a…

Linda Yaccarino: Elon Musk’s X deputy who ‘tried to ride the tiger’

Linda Yaccarino insisted three weeks ago that little had changed when billionaire…

Vietnam got an early trade deal with Donald Trump. Was it worth it?

For Thanh Cong Garment, a Vietnamese supplier to apparel companies including Adidas,…

- Advertisement -
Ad imageAd image

You Might Also Like

News

Summertime sadness is a real thing

By News Room
News

Manufacturers plead for US tariff clarity before copper stockpiles dwindle

By News Room
News

BCG earned more than $1mn for Gaza aid barge project

By News Room
News

Linda Yaccarino: Elon Musk’s X deputy who ‘tried to ride the tiger’

By News Room
News

Vietnam got an early trade deal with Donald Trump. Was it worth it?

By News Room
News

Italian court confirms UniCredit must exit Russia to complete BPM takeover

By News Room
News

Trump says he will impose 30% tariffs on the EU and Mexico from August 1

By News Room
News

Africa’s top garment exporter could fold under US tariffs, minister says

By News Room
Facebook Twitter Pinterest Youtube Instagram
Company
  • Privacy Policy
  • Terms & Conditions
  • Press Release
  • Contact
  • Advertisement
More Info
  • Newsletter
  • Market Data
  • Credit Cards
  • Videos

Sign Up For Free

Subscribe to our newsletter and don't miss out on our programs, webinars and trainings.

I have read and agree to the terms & conditions
Join Community

2023 © Indepta.com. All Rights Reserved.

Welcome Back!

Sign in to your account

Lost your password?