JPMorgan: Trump’s Nomination of Milan to the Fed Board Would Steepen the Yield Curve

According to a report by Jinse Finance, JPMorgan strategists have stated that if Trump successfully appoints key members to the Federal Reserve, the U.S. Treasury yield curve could steepen from its highest level in four years. After Trump selected Stephen Moore, chairman of the Council of Economic Advisers, as a nominee for the Federal Reserve Board, the yield spread between 5-year and 30-year U.S. Treasury bonds widened on Thursday. This appointment requires Senate approval. "Moore has consistently believed that the Trump administration's trade, immigration, and deregulation policies are all disinflationary," wrote JPMorgan analysts led by Jay Barry in a report released later on Thursday. "To some extent, this supports a more dovish Fed policy and also contributed to the curve steepening seen this afternoon."