Trump Sees Fed Nominee Driving 15% Growth; IBM’s Gary Cohn Praises Pick
President Trump said Fed nominee Kevin Warsh could drive U.S. GDP above 15% and IBM’s former CFO Gary Cohn praised the nomination, but Senator Tillis threatens to stall confirmations over a Justice probe. Prospects of up to five rate cuts are steepening the yield curve.
1. Trump’s Comments and Market Reaction
President Trump said Fed nominee Kevin Warsh could drive U.S. economic growth beyond 15%, eliciting support from IBM’s former CFO Gary Cohn who cited positive market sentiment. Elizabeth Warren cautioned that such optimism may compromise Fed independence, and investors are weighing growth prospects against inflation risks.
2. Confirmation Delay and Rate Cut Outlook
Senator Thom Tillis has promised to block all Fed nominations while a Justice Department probe continues, creating policy uncertainty. Macro analysts forecast up to five rate cuts under Warsh, steepening the yield curve and prompting a shift toward shorter-term bonds.