Hi YXI friends,

While many people expect Kevin Warsh, appointed by Trump who wants lower rates, to potentially sound dovish in his first Press Conference, it was anything but.

Warsh repeatedly said that the Fed will deliver price stability, something it failed to do over the past 5 years.

Half of the FOMC members expect a hike later this year, although not a full hiking cycle yet.

Warsh himself didn’t put down a dot, potentially dodging Trump’s question on why he wants hikes.

Overall, yields have shot up since the FOMC, now pencilling in a full hike by 2026 year-end and a small chance of another. This put a lot of pressure on risk assets yesterday, and now the question is whether we could further pull back to complete the consolidation that began early in the month.

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