Good evening, and welcome to Markets Desk.
The Federal Reserve is front and center tonight, and the tension between monetary policy and political ambition is sharpening. Kevin Warsh, widely seen as Trump's preferred pick to eventually chair the Fed, reportedly wants to cut rates while simultaneously shrinking the balance sheet — a combination that traders say could destabilize the very bull market Trump has staked his economic credibility on.
That rate cut conversation got a sharp rebuttal today from Jeffrey Gundlach of DoubleLine Capital. The bond king said flatly that a cut from the Fed is, in his words, just not possible right now. With the two-year Treasury holding firm and inflation markets refusing to cooperate, Gundlach believes the two cuts many investors had penciled in for this year are simply off the table. The market is listening.
Meanwhile, a quieter signal worth watching — Lone Peak Global Investors exited roughly twenty million dollars worth of Thermon shares last quarter, following what the company called record earnings. When sophisticated money sells into strength after a peak performance quarter, it raises a fair question about whether the upside has already been priced in and where that capital is being redeployed.
That's the tape. Markets Desk, signing off the floor.
