Will Team Trump's Fed Bond Cut Call Sway Rate Path?
Bond investors may have another reason to worry after Donald Trump’s election last week: Some of his allies are not fans of the Federal Reserve’s big balance sheet of bonds and want the central bank to shrink it. Bond prices have nosedived since Trump was elected president on Nov. 8 as investors concluded that his proposals for lower taxes and higher military and infrastructure spending would lead to faster economic growth and increased inflation. A move to reduce the Fed’s bond holdings could put further downward pressure on prices by adding to the supply investors would have to absorb. LSE Political Science Fellow Brian Klaas, Citigroup Global Markets Global Head of Equity Trading Strategies Antonin Jullier and NN Investment Partners Head of Multi Asset Strategies Valentijn Van Nieuwenhuijzen discuss with Francine Lacqua on "Bloomberg Surveillance."