This marks the first time markets are actively pricing in political influence over Fed policy two years in advance, with a specific 76 basis point prediction. The unprecedented gap between SOFR futures expiring in December 2025 versus 2026 reveals how deeply political pressure is now embedded in long-term monetary expectations, creating a new form of centralized economic control.
Fed Rate Cut Bets Surge on Trump's Push for New 2026 Chair
📰 What Happened
Bond investors are increasing bets on Federal Reserve rate cuts for 2025-2026, pricing in 76 basis points of reductions compared to just 25 basis points in April. This shift follows Trump's intensified criticism of Fed Chair Jerome Powell, whose term ends May 2026. Traders expect Powell's successor to align with Trump's push for lower rates. Ed Al-Hussainy of Columbia Threadneedle notes, 'Whoever comes in next, that person is going to have a bias towards lowering rates,' as asset managers reposition portfolios accordingly.
📖 Prophetic Significance
The convergence of three key elements - Trump's public pressure on the Fed, traders' 76 basis point rate cut forecast, and the strategic timing through 2026 - points to an accelerating prophectic timeline. This aligns with Daniel's warnings about economic control in the last days, as political figures gain unprecedented influence over monetary policy. Combined with recent developments in digital currencies and global market integration, this creates the infrastructure for the prophesied economic system where a single authority can control buying and selling.