Institution: The Federal Reserve will adopt a "super dovish" stance, betting on US two-year Treasury bonds.

Hedge fund Tolou Capital Management has established a leveraged long position on two-year US treasuries, believing that Federal Reserve Chairman Powell will be replaced by a "super-dove" who will cut interest rates significantly under the urging of US President Trump. Tolou Capital's Chief Investment Officer, Spencer Hakimian, started going long three weeks ago, betting that short-term bond yields will drop sharply in the next 12-18 months; Powell's term expires in May 2026, and Trump recently stated that he will "soon" appoint a successor.