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JPMorgan: Trump's appointment of Milan to The Federal Reserve Board of Governors will cause the yield curve to steepen.
[JPMorgan: Trump's appointment of Milan to the Federal Reserve Board of Governors will steepen the yield curve] JPMorgan strategists said that if Trump successfully appoints a key member of the Fed, the U.S. Treasury yield curve could steepen from its highest level in four years. After Trump chose Stephen Milan, chairman of the Council of Economic Advisers, to be a member of the Federal Reserve Board of Governors, the spread between the 5-year and 30-year U.S. Treasury yields widened on Thursday. This appointment requires Senate approval. "Milan has always believed that the Trump administration's trade, immigration, and deregulation policies are all anti-inflationary," wrote JPMorgan analysts led by Jay Barry in a report released later on Thursday. "To some extent, this supports a more dovish Fed policy, which also supports the steepening of the curve that occurred this afternoon."