President Trump said he was leaning toward choosing either former Fed governor Kevin Warsh or National Economic Council Director Kevin Hassett to lead the Federal Reserve next year

The Federal Reserve has reduced interest rates by 25 basis points, despite expectations for economic growth in the coming year. This decision raises questions about the Fed's strategy and its capacity for further rate cuts, as discussed by former Council of Economic Advisers chair Glenn Hubbard, who suggests limited room for additional reductions through 2026.

Former President Donald Trump is reportedly leaning towards nominating either Kevin Warsh or Kevin Hassett to lead the Federal Reserve, as he prepares to finalize his selection for the position. This decision comes amid ongoing discussions about the future direction of U.S. monetary policy.

JPMorgan CEO Jamie Dimon has expressed support for Kevin Warsh in the race for the Federal Reserve chair, suggesting that Kevin Hassett may be more inclined to align with Donald Trump's proposals for interest rate cuts. This endorsement highlights the competitive landscape for the Fed leadership role.

Key U.S. economic data on jobs and inflation is set to be released, which will be closely monitored by investors as they assess the likelihood of further interest rate cuts by the Federal Reserve. This data is crucial for understanding the current state of the labor market and inflation trends.

The Federal Reserve's decision to cut interest rates by a quarter of a percentage point has revealed significant internal divisions among officials, with contrasting views on how to address a cooling labor market and elevated inflation. Fed Chair Jerome H. Powell is tasked with navigating these disagreements to reach a consensus among his colleagues.

Long-term Treasuries declined, leading to the 30-year bond yield reaching its highest level since early September, influenced by the recent Federal Reserve interest-rate cut and its policy outlook. This shift reflects market reactions to the Fed's decisions and economic indicators.

The US Supreme Court is set to rule on the legality of tariffs imposed by President Donald Trump in April, which previously caused significant market fluctuations. This ruling could have substantial implications for various stocks that have experienced growth since the tariffs were enacted.

Federal Reserve officials are currently divided over the potential for interest rate cuts, with discussions reflecting concerns about maintaining credibility regarding inflation. This debate is crucial as policymakers prepare for their upcoming meetings, which could significantly influence monetary policy direction.