WASHINGTON: The potential ouster of Federal Reserve (Fed) chair Jerome Powell by President Donald Trump will likely drive the 30-year Treasury yield higher by more than half a percentage point, according to Deutsche Bank AG strategists.
The clearest hedge against risks to the Fed’s independence – and a scenario in which US government spending consumes monetary policy – are yield curve steepener trades, a team including Matthew Raskin and Steven Zeng wrote in a note to clients.
