COLOMBIA: JP Morgan Says Fiscal Considerations May Have Less Weight For BanRep

• US TSY 9Y-10M AUCTION: NON-COMP BIDS $120 MLN FROM $39.000 BLN TOTAL

A transcript from Atlanta Fed's Bostic's interview from back on Dec 9 (pre the Dec 17-18 FOMC meeting), a long while ago but he hasn't publicly spoken since then. He voted last year and the role isn't set to vote again until 2027.

He echoed a need for caution that other members have since expressed: “Given that kind of bumpiness in the measures, I think that will call for our policy approach to be more cautious. [...] "I want to make sure we get the right signal, and make sure that our policy is calibrated to that right signal. And if we’ve got to err, I would err on the upside. I would want to make sure—for sure—that inflation gets to 2 percent, which means we may have to keep our policy rate higher longer than people might expect, or we may have to be more deliberate in the pacing of reducing our policy. So on net it’ll be higher, even as we’re higher than an original baseline on what that movement of 2 percent might look like."

The Senate will begin confirmation hearings for President-elect Donald Trump’s cabinet nominations next week. Data from Polymarkets shows bettors are increasingly confident that Trump’s four most embattled Cabinet nominees – Defense Secretary nominee PeteHegseth, FBI Director nominee Kash Patel, Health Secretary nominee Robert F. Kennedy Jr, and Director of National Intelligence nominee Tulsi Gabbard – are all on track for confirmation.

• On January 14, the Senate Armed Services Committee will hear testimony from Hegseth and the Judiciary Committee will hear from Trump’s Attorney General nominee Pam Bondi.
• On January 15, the Judiciary Committee will host Patel and Deputy Attorney General nominee Todd Blanche. The Committee on Environment and Public Works is also likely to hold a hearing for Trump’s nominee to run the Environmental Protection Agency, Lee Zeldin on January 15.
• CBS News reports that Senate Majority Leader John Thune (R-SD), “privately told Trump he believes Hegseth will have the votes to be confirmed as Defense secretary,” despite a string of allegations over his personal conduct. 

Figure 1: Trump Cabinet Nominees, %Implied Probability of Senate Confirmation

Source: Polymarket