US stock futures slipped as President Trump’s pick for Fed governor headed for Senate confirmation, following another record-setting day on Wall Street.
Futures attached to the Dow Jones Industrial Average (YM=F), the benchmark S&P 500 (ES=F), and the tech-heavy Nasdaq 100 (NQ=F) fell 0.1%.
The Senate is expected to vote to officially confirm Stephen Miran as Trump’s nominee to the Federal Reserve Board on Monday night, a day before the central bank’s policy meeting kicks off Tuesday. The move would put Miran in place just in time to cast a crucial vote on the direction of interest rates.
Though Miran has said he would act independently if confirmed, his intention to take a leave of absence — but not resign — from his current role as a White House advisor has raised questions about the future of Fed independence, especially as Trump pursues firing Fed governor Lisa Cook.
In day trading Monday, stocks rose, lifting the S&P 500 (^GSPC) and Nasdaq Composite (^IXIC) to new heights. Ongoing US-China trade talks in Madrid and anticipation Fed officials will announce a rate cut at its next meeting boosted sentiment.
In an otherwise light week on economic data, on Tuesday, investors will receive the latest figures on retail sales. The update will offer insight into how consumers are faring amid sticky inflation and a wobbly labor market.
The main event of the week, however, lands Wednesday, when the Fed will announce its decision on rates. Markets are confident policymakers will cut rates due to a slowdown in the labor market, despite persistently high prices. Traders currently see a 96% chance of a 25 basis-point cut and a 4% chance of a jumbo reduction.
Finally, on Friday, Trump and Chinese President Xi Jinping are expected to discuss trade and a new framework for a TikTok deal.
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