Trump gives update on search for a new Fed Chair

Summary

President Donald Trump said in a Davos speech that he has instructed government-backed institutions to buy up to $200 billion in mortgage bonds to lower interest rates. He also said he will announce a new Federal Reserve chair in the not-too-distant future and sharply criticized current Chair Jerome Powell as too late on rates. The comments point to policy-driven support for mortgage bonds and potential Fed leadership changes affecting rate expectations.

• Trump said government-backed institutions will purchase up to $200 billion in mortgage bonds.
• He said the goal is to bring down interest rates.
• Trump said a new Fed chair will be announced in the not-too-distant future.
• He criticized Jerome Powell as a terrible chair who is too late on rates.
• Trump said all interviewed Fed chair candidates are respected.
• He said officials often change once they get the job.
• The remarks imply policy support for mortgage bonds and rate-sensitive assets.