Just moments ago, Trump didn't back out and directly announced his nominee: Kevin Warsh was nominated as the new Federal Reserve Chairman. Now that my second point of contention is cleared, let's focus on the first one. We need to pay attention to whether Warsh, as the future chairman, will begin speaking, in conjunction with Bessenter, to boost confidence in the dollar. Currently, in the main narrative of the macro market, while the government shutdown remains unresolved, Trump's recent communication with the Democrats likely averts a large-scale shutdown. Tonight's December PPI data has relatively low weight; the market will likely price in the new Fed Chairman tonight. The market expects Warsh to not support large, consecutive interest rate cuts and to maintain a policy of tightening liquidity. This expectation is unfavorable for risk markets but will boost confidence in the dollar and US Treasury bonds. We'll see if this is priced in later during the US trading session. In fact, unless Warsh changes his previous views, his nomination is currently less beneficial to risk markets and interest rate cuts than Powell's.

I think, disregarding encryption, Walsh's policy of interest rate cuts and balance sheet reduction is a brilliant move. x.com/blockTVBee/status/201722...… Seeing Uncle Cat say that a large-scale government shutdown is highly likely to be avoided makes me feel relieved. I bought a no-shutdown policy on PM, haha.