Bond Traders Wrestle With Two Extremes for the Fed in Powell and Taylor

In the eyes of Wall Street, President Donald Trump couldn’t be choosing between two more different candidates for the next Federal Reserve chair.

That choice — between Stanford University economist John Taylor and Fed Board Governor Jerome Powell — has the potential to jolt the bond market in a year defined by low volatility and a tug-of-war between bulls and bears that’s kept yields stuck in a tight range. Powell, considered the Republican Party’s alternative to renominating Janet Yellen, is the leader on betting website PredictIt. 

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