Dowling Securities: If Powell is selected as the next Federal Reserve chairman, the US bond yield curve may tend to steepen.

Strategists at Citigroup said in a report that if former Federal Reserve governor Kevin Warsh is nominated as the next Federal Reserve chairman, the US bond yield curve may steepen. These strategists said that this expected steepening trend would be driven by short-term interest rate reductions greater than long-term rates. If BlackRock's Chief Investment Officer for Fixed Income Rick Rieder is nominated as Federal Reserve chairman, the US bond yield curve may flatten, driven by long-term interest rate reductions greater than short-term rates. However, in either scenario, Citigroup expects this reaction to be temporary, as the new chairman will need to persuade other committee members. President Trump's advisers have been informed that he is expected to nominate Warsh, possibly as early as Friday.