Bowman Dismisses Fed Chair Speculation

Yields decline ahead of Jackson Hole forum. UST yields fell today for the first time in three days, as traders anticipate a dovish tone from Fed Chair Powell’s Jackson Hole speech on Friday and continue to price in high odds of a rate cut in September. Yields dropped 1-3 bps across the curve, with the 2-year yield closing at 3.75% and the 10-year yield closing at 4.31%. Meanwhile, the NASDAQ saw its second-worst day since April, sliding 1.46% as Nvidia led losses with a 3.50% drop.

Bowman deflects Fed Chair question. Speaking to media on Tuesday, Fed Governor Bowman deflected a question about her consideration to be the next Federal Reserve Chair. As the current Vice Chair for Supervision, she responded, “I’m really focused on the job that I’m doing,” and pointed to Fed plans to overhaul various capital rules, with the goal of making them less burdensome on large banks. Bowman’s statement came just ahead of her remarks at the Wyoming Blockchain Symposium, and as the Trump Administration narrows its list of Fed Chair candidates, with a pick expected to be announced this fall.

India continues to lean away from US relationship. Indian Prime minister Modi called Russian President Putin his “friend” following a phone call today where the two discussed bilateral cooperation and committed to remaining in touch. The conversation comes as India’s relationship with the US has soured after President Trump placed an additional 25% tariff on India for purchasing Russian oil. India has also begun aligning itself with China, as Modi met with Chinese Foreign Minister Wang Yi today. After years of tensions between the two nations, Wang said that India and China should view “each other as partners and opportunities, not as opponents or threats.” India’s rejuvenated partnership with BRICS nations signals a break from what was previously a strengthening economic relationship with the US. After five rounds of failed negotiations, the 50% tariff imposed by the US goes into effect on August 27.