TD Securities: Waller is unlikely to persuade his colleagues to support a Fed rate cut or balance sheet adjustment in the short term

Gennadiy Goldberg, head of U.S. interest rate strategy at TD Securities: The nomination of Kevin Warsh as Federal Reserve Chairman has triggered a steepening of the market yield curve, as the market remains deeply concerned about the independence of the Federal Reserve. Warsh has long criticized the Federal Reserve's policies, but his criticisms have mostly pointed to the Fed being too dovish, making it difficult for the market to judge its long-term policy direction. He also opposes the use of balance sheet tools by the Federal Reserve. However, the chairman is only one of the 12 voting members and still needs to persuade colleagues to support interest rate cuts or adjustments to balance sheet policy—both of which are unlikely to be realized in the short term. Current policy remains unchanged, but the market will continue to stay tense until Warsh makes a clear statement