ME News Report, May 20 (UTC+8), driven by rising energy prices due to the US-Iran conflict, US Treasury sell-offs, and concerns over fiscal deficits, the yield on the 30-year US Treasury has risen to its highest level since 2007, with market fears of inflation and high interest rates continuing to intensify. Kevin Woots, who is set to be sworn in as Federal Reserve Chair this week, is facing multiple pressures: on one hand, the White House has previously called for interest rate cuts; on the other hand, most Fed officials lean toward maintaining high interest rates. In a recent interview, Trump said he would "let Woots do what he wants," calling him "very talented." But just last month, Trump publicly stated that if Woots does not immediately cut rates after taking office, he would be disappointed. Analysts believe this statement indicates that the White House has already begun to leave an "escape route" for a rate hold in June. Economist Derek Tang said that Trump seems to realize that the Fed's rate decisions are made collectively by the Federal Open Market Committee (FOMC), not solely by the chair. "This gives Woots some buffer space early in his tenure as Fed Chair." Currently, support within the Fed for a rate cut in the short term has noticeably decreased. As energy prices rise, US inflation pressures have reignited, and the labor market remains stable, market expectations for rate cuts this year continue to fade. Former Fed economist Julia Coronado said, "There is almost no evidence of deflation at the moment, and the war could further worsen fiscal conditions. The path to rate cuts may require a recession first." JPMorgan Chief US Economist Michael Feroli also pointed out that in the current environment, it will be more difficult for Woots to push the committee to support rate cuts this year. Additionally, the upcoming departure of Powell is expected to keep him on the Fed Board, which market participants believe will also limit Woots' ability to quickly reshape policy direction. (Source: BlockBeats)

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Trump reverses course, saying “Let Wosch decide interest rates”; U.S. Treasury yields surge, pressuring the new Federal Reserve chair

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