Trump hints at nominating a new economic advisor, U.S. Treasury prices drop and rate cut expectations shrink

According to Jin Shi reports, due to Trump's hint at nominating someone other than National Economic Council Director Hassett to replace Powell, U.S. Treasury prices fell, and traders reduced expectations for two rate cuts in 2026. The decline in U.S. government bonds pushed the two-year yield up by 5 basis points to 3.61%, the highest level since the Fed's last rate cut in December. Short-term interest rate contracts reflect a decrease in the probability of the Fed making two 25 basis point cuts this year.