💥 MARKET SHOCKWAVE: Washington Sends Bond Markets Into Turmoil
The White House has just changed the game overnight.
Chief economic advisor Kevin Hassett remains in his role, after Trump reportedly told him: “You’re too important where you are.”
That single message effectively froze his path to the Fed chair — and markets reacted instantly.
📊 Bond Market Reacts Hard
The 10-year U.S. Treasury yield surged to 4.23%, the highest level seen since last September.
Investors are now questioning whether rate cuts are even on the table anymore.
👀 A New Fed Favorite Emerges
Attention is rapidly shifting to Kevin Warsh, former Fed Governor, whose odds of becoming the next Fed Chair have jumped close to 60% on prediction markets.
Warsh is known as a hardline inflation fighter, even supporting rate hikes during past crises — a sharp contrast to recent dovish expectations.
🔥 Traders Reprice Reality
Polymarket activity is exploding as participants reassess the future rate path.
The “easy money” narrative is fading, while a hawkish reset is gaining momentum.
⚠️ Calm Before the Storm?
The MOVE Index (bond volatility) is sitting near a four-year low — historically a dangerous setup.
At the same time, the U.S. Supreme Court is preparing a major decision on Trump-era tariffs, which could redefine presidential economic power.
🌍 Global Markets on Edge
With the Fed leadership still undecided, the world faces a critical question:
Will the next four years bring aggressive tightening to tame inflation — or renewed easing to support markets?
This chapter is just opening.
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