Svmuu News: U.S. Treasury prices fell after Donald Trump hinted that it would nominate someone other than National Economic Council Director Hassett to succeed Jerome Powell, prompting traders to scale back their expectations for two U.S. interest rate cuts in 2026.The decline in U.S. Treasuries pushed the two-year yield up as much as 5 basis points to 3.61%, the highest level since the Federal Reserve’s Federal Reserve most recent rate cut in December. Following Donald Trump comments from Hassett, short-term interest rate contracts reflected a lower probability of Federal Reserve two 25-basis-point rate cuts this year.Meanwhile, the Treasury market continues to be weighed down by the December jobs data released a week ago, prompting Wall Street banks that had previously predicted Federal Reserve a rate cut at the next meeting on January 28 to abandon that view.JPMorgan inflation economists predict that, despite the leadership transition at Federal Reserve, Federal Reserve will not cut rates further.John Fath, managing partner at BTG Pactual Asset Management U.S., said, “The previous trade was betting that whoever becomes the next Federal Reserve chair would be dovish. That dynamic has reversed in the past few days.” (Jin Shi)