🚀 New Fed Chair shortlist down to five candidates

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Year To Date Performances:

1. Treasury Secretary Scott Bessent has narrowed down President Donald Trump’s list of potential Federal Reserve chair candidates to five, following a series of in-depth interviews. The shortlist includes current Fed officials Michelle Bowman and Christopher Waller, White House economic advisor Kevin Hassett, former Fed Governor Kevin Warsh, and BlackRock’s Chief Investment Officer of Fixed Income, Rick Rieder. Another round of interviews will take place in the coming weeks, with Bessent expected to send a final list to Trump after Thanksgiving. The administration may first nominate the chosen candidate as a Fed governor before elevating them to chair once Jerome Powell’s term ends in May. While no frontrunner has emerged, officials noted that Rieder has impressed Bessent, who is reportedly seeking a chair open to reforming the Fed’s structure and scaling back its expansive policies like quantitative easing.

2. Global shipping companies are scrambling to understand new U.S. port fees on Chinese-built vessels set to take effect next week, fearing unexpected financial shocks amid unclear rules from the U.S. Trade Representative. The Trump administration says the fees aim to counter China’s dominance in shipbuilding and revive the struggling American industry, but carriers worry even financing ties to Chinese lessors could trigger penalties. Analysts warn the ambiguity could cost operators millions per ship, prompting some to refinance away from Chinese-backed deals or shift routes to avoid U.S. ports. China has already retaliated with its own port fees on U.S.-flagged ships, raising tensions in a trade battle that now threatens to ripple through global supply chains.

3. Morgan Stanley will soon allow all of its wealth management clients to invest in crypto funds, lifting previous restrictions that limited access to only high-net-worth investors with aggressive risk profiles. Starting October 15, clients will be able to hold crypto investments in any type of account, including retirement plans, as the firm expands its offerings amid the Trump administration’s friendlier stance toward digital assets. The move follows Morgan Stanley’s recent announcement that E-Trade users will be able to trade bitcoin, ether, and solana, signalling a broader institutional embrace of crypto. To manage risk, the bank will use automated monitoring systems to prevent clients from overexposing their portfolios, with its investment committee recommending a maximum allocation of around 4%. Currently, advisors can only pitch bitcoin funds from BlackRock and Fidelity, though Morgan Stanley may add more products as the market evolves.

   Headlines

   1. Costco has become one of the world’s largest apparel retailers with $9.7B in clothing sales last year.

   2. The current government shutdown could be used as a catalyst for further cuts to the federal government’s workforce.