JPMorgan: Miran's appointment as a Federal Reserve governor may further steepen the US yield curve.

JPMorgan's strategist stated that if President Donald Trump's key appointment to the Federal Reserve is successful, the US Treasury yield curve may steepen further from its widest level in four years. On Thursday, the spread between the yields of the US 5-year and 30-year Treasury bonds widened, following Trump's selection of economic adviser committee chairman Stephen Miran as a Federal Reserve governor. This appointment requires confirmation by the Senate. There have been reports that Federal Reserve Governor Warsh is the frontrunner to succeed Powell as the Fed chairman. JPMorgan analyst Jay Barry wrote in a report released on Thursday evening, "Miran has consistently argued that Trump administration's trade, immigration, and deregulation policies could lead to lower inflation. If this supports the Fed to take a more dovish stance, then it would support the steepening of the yield curve observed this afternoon."