Markets focused on December FOMC meeting, Fed Chair pick. Treasury yields rose overnight before inching lower over the remainder of today’s session as markets await the last bits of economic data ahead of the FOMC meeting beginning on December 9. Attention was also on Trump’s comments on the Fed Chair nominee, to be revealed in early 2026. The 2-year yield closed 2 bps lower at 3.51%, and the 10-year yield closed flat at 4.09%. Meanwhile, equities rose today, with the S&P 500 and NASDAQ up 0.25% and 0.59% higher, respectively. Bitcoin climbed back above $90,000, recovering from its selloff in November.
Trump to announce Fed Chair nominee in early 2026, hints at Hassett. Speaking to reporters today, President Trump said that he had narrowed his list of ten Fed Chair candidates “down to one.” Speaking at a post-cabinet meeting event, he then teased National Economic Council Director Kevin Hassett as a likely pick, saying “I guess a potential Fed chair is here too,” calling Hassett “a respected person.” Trump’s comments offer clarity to an uncertain timeline and come after Treasury Secretary Scott Bessent had previously said a nominee would be named later this month. Since Hassett is not a current Fed official, if he is nominated and confirmed by the Senate, it is likely he will receive a 14-year Fed governor term, beginning February 1.
The US and Brazil make progress on trade talks. President Donald Trump said he spoke with Brazilian President Luiz Inacio Lula da Silva today about US trade sanctions. Following the call, Trump said, “We had a great talk. We talked about trade. We talked about sanctions, because…I sanctioned them having to do with certain things that took place.” The conversation is a sign of improving relations between the US and Brazil after Trump, earlier this year, imposed an additional 40% tariff on Brazilian exports on top of the pre-existing 10% levy. The President had also sanctioned a Brazilian Supreme Court justice in retaliation of the prosecution of former Brazilian leader Bolsonaro, a Trump ally. Last month, Trump cut tariffs on some food products, such as beef and coffee, though Brazil remains eager to continue negotiating tariffs on other items.