Name: Trump Picks Kevin Warsh As Next Fed Chair | Real Yield 1/30/2026
Uploaded: 2026-01-30T20:13:55+00:00
Duration: 2098 s

Speakers

Gennadiy Goldberg — Head of US Rates Strategy, TD Securities

Leslie Falconio — Head of Taxable Income Strategy, UBS Global Wealth Management

St. John — Senior Portfolio Manager, Lincoln Investment

Michael McKee — International Economics & Policy Correspondent, Bloomberg

Gene Tannuzzo — Global Head of Fixed Income, Columbia Threadneedle Investments

Narayana Kocherlakota — Professor of Finance, University of Rochester; Former Minneapolis Fed President

Summary

Bloomberg Real Yield focuses on President Trump's nomination of Kevin Warsh as next Fed chair and the muted market reaction, including a modest 5s30s steepener. Guests debate Warsh's policy stance, Fed independence, balance-sheet shrinkage, and implications for rates, credit, and equities. A credit roundtable discusses tight spreads, high-quality bond positioning, record investment-grade supply, Big Tech AI capex financing, and software-related stress in leveraged credit.

Trump nominates Kevin Warsh as Fed chair, with Senator Thom Tillis opposing confirmation until the DOJ probe into Powell is resolved.
Markets react with a modest curve steepening as investors debate whether Warsh will be dovish or hawkish.
Panelists expect the Fed to remain data-dependent, with labor-market weakness a key trigger for more cuts.
Credit spreads are tight and the fixed-income opportunity set is narrow, leading to a preference for high-quality corporate bonds.
Record January investment-grade supply and Big Tech AI capex are turning into major financing events.
Industrial supply-chain companies are seen as beneficiaries of large technology capex spending.
Leveraged loans and high-yield tech credit show software-related stress worth monitoring.
Kocherlakota argues a smaller Fed balance sheet would raise long-term yields and mortgage rates.

Ideas

Gennadiy Goldberg Head of US Rates Strategy, TD Securities 6:21

Warsh pick favors 5s30s steepener.

The knee-jerk 5s30s steepener makes sense because Warsh's nomination reinforces expectations of lower policy rates, while concerns about a smaller Fed balance sheet are less supportive for the long end of the curve; the move is modest and depends on which Warsh shows up.

St. John Senior Portfolio Manager, Lincoln Investment 22:20

AI capex benefits industrial supply chain.

If Big Tech spends up to $3 trillion on capex over five years, these firms will need to rely on almost every asset class for financing; any company tied to the industrial supply chain should be a major beneficiary of that spending.

Leslie Falconio Head of Taxable Income Strategy, UBS Global Wealth Management 22:47

Favor high-quality corporate bonds for income.

Spreads are tight and the opportunity set in fixed income is narrow, but Leslie still favors high-quality corporate bonds for income durability; fundamentals show no cracks, above-trend growth is expected, and the heavy tech-related supply/concentration risk is known but should be monitored.

St. John Senior Portfolio Manager, Lincoln Investment 24:12

Watch software risk in leveraged credit.

Leveraged loans had a weak month due in part to software, and high-yield tech-sector spreads are concerning even as the high-yield index spread is tight; this makes overall credit-market concentration and software risk worth monitoring.

This Bloomberg Markets video, published January 30, 2026, features Gennadiy Goldberg, St. John, Leslie Falconio discussing 5s30s Treasury curve steepener, industrial supply chain, LQD, Leveraged Loans, HYG. 4 trade ideas extracted by AI with direction and confidence scoring.

Speakers: Gennadiy Goldberg, St. John, Leslie Falconio · Tickers: 5s30s Treasury curve steepener, industrial supply chain, LQD, Leveraged Loans, HYG

Trump Picks Kevin Warsh As Next Fed Chair | Real Yield 1/30/2026

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