KUALA LUMPUR, Jan 28 (Bernama) -- Bursa Malaysia snapped its five-day winning streak to close lower on Wednesday, as investors took profit following a cumulative gain of 4.25 per cent over the past five sessions, said an analyst. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) fell 14.76 points or 0.83 per cent to 1,756.49 from Tuesday’s close of 1,771.25. The market bellwether opened 1.46 points lower at 1,769.79, marking the day’s high, and hit a low of 1,750.05 during the mid-afternoon session. Market breadth was negative with losers trouncing gainers 876 to 384, while 525 counters were unchanged, 964 untraded and 94 suspended. Turnover improved to 3.65 billion units worth RM4.41 billion from Tuesday's 3.58 billion units worth RM4.46 billion.
President Donald Trump is facing a familiar problem — he wants lower interest rates fast, but without spooking Wall Street or damaging Fed credibility. With Jerome Powell’s term ending in May, the lack of clarity around the next Federal Reserve chair is becoming a growing concern for investors.
Quick Summary
Trump wants aggressive rate cuts without market panic
All four candidates involve trade-offs
Bond markets are the most vulnerable to surprises
Policy uncertainty may drive volatility before the nomination
Why Investors Are Watching Closely
Trump wants a Fed chair who can:
Cut interest rates aggressively
Align publicly with his economic views
Maintain credibility with markets and global investors
The problem:
A loyal rate-cutter may unsettle bond markets, while a credible Fed insider may resist political pressure.
The Four Shortlisted Names — Each Comes With a Cost
Kevin Hassett
Most aligned with Trump’s agenda
Trusted insider and loyal adviser
Raises serious concerns over Fed independence
- Trump hesitant to lose him as a key media voice⚠️ Market risk: Bond investors may fear political interference.
Kevin Warsh
Former Fed governor with strong credentials
Comfortable in media, publicly supportive of Trump
Known inflation hawk
- Seen as an establishment Republican⚠️ Key concern: May resist rapid rate cuts.
Christopher Waller
Current Fed governor, respected on Wall Street
Has made a data-driven case for lower rates
No personal relationship with Trump
- Trump doubts his loyalty on past rate decisions⚠️ Credible, but not loyal enough.
Rick Rieder
Fixed income CIO at BlackRock, overseeing US$3 trillion+
Longtime advocate of lower rates from a market perspective
Strong views on housing affordability
No Fed or government experience
- Limited political alignment with Trump’s base⚠️ High market credibility, low political compatibility.
Trump’s Core Fear: Loyalty After Confirmation
Trump has repeatedly warned that nominees often:
Promise alignment before confirmation
Assert independence once in office
His message was blunt:
“Anybody that disagrees with me will never be the Fed Chairman!”
Timing: No Rush, But Markets Are Uneasy
Powell’s term ends mid-May
A decision by late February would still be normal
The Fed is expected to hold rates steady, likely triggering fresh criticism from Trump
Market Takeaway
Fed independence vs political pressure is now a key market risk
Bond markets are likely more sensitive than equities
Rate and FX volatility may rise as the nomination approaches
Bottom Line
Trump wants a rate-cutter who won’t scare Wall Street — and that may be a contradiction.
Until a decision is made, markets remain stuck between politics, policy, and credibility.
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