Winners and Losers in a Fannie, Freddie IPO

Kevin Hassett, a prominent economic advisor to former President Trump, has emerged as a leading candidate for the Federal Reserve chair, emphasizing the role of tariffs in boosting Treasury revenues. Meanwhile, Treasury Secretary Scott Bessent has expressed concerns about the national debt, likening it to a 'shrinking ice cube.'

The Financial Conduct Authority (FCA) has opted not to investigate Chancellor Rachel Reeves or the Treasury regarding pre-budget briefings, despite allegations from the Conservative Party suggesting potential market manipulation. The FCA's decision leaves open the possibility for future inquiries, particularly in light of ongoing concerns about the integrity of financial communications leading up to the budget announcement.

Scott Bessent is being considered to lead the National Economic Council while continuing his role as Treasury Secretary, as reported by Bloomberg. This potential dual role highlights the administration's strategy to streamline economic policy leadership amid ongoing economic challenges.

Treasury yields have declined as recent data indicates a rapid weakening in U.S. employment, supporting expectations for a third consecutive interest rate cut by the Federal Reserve next week. This trend is underscored by a reported drop in private payrolls, which fell by 32,000 jobs in November, raising concerns about the labor market's health.

Treasury Secretary Scott Bessent described the Giving Pledge as well-intentioned but lacking clarity, suggesting it emerged from a sense of urgency among billionaires. He emphasized that when individuals have a stake in the system, they are less likely to undermine it, a sentiment expressed during the DealBook Summit.

Treasury Secretary Scott Bessent has expressed a desire for Federal Reserve bank presidents to reside within their respective districts, emphasizing the importance of local engagement in monetary policy decisions. This statement reflects a push for greater accountability and connection between the Fed and the communities it serves.

Richard Hughes has resigned as the chair of the Office for Budget Responsibility (OBR) amid growing concerns over budget leaks, particularly the premature release of Rachel Reeves's budget details. This resignation may alleviate some pressure on Reeves as she prepares for her upcoming budget presentation.

The Office for Budget Responsibility (OBR) raised concerns with Treasury officials about leaks that it claimed spread misconceptions regarding its forecasts ahead of the recent budget announcement. Prof David Miles, a member of the OBR's budget responsibility committee, informed MPs that these leaks were problematic and unhelpful in the context of the budget preparations.