Morgan Stanley: With the Federal Reserve expected to address constraints, the premium on US Treasury bond maturities may rise.

Morgan Stanley Wealth Management expects that with Kevin Warsh, the nominee for Federal Reserve Chairman, likely to implement policies reducing the use of the balance sheet and weakening forward guidance, the term premium of US Treasuries will rise, and long-term interest rates will remain at higher levels for a longer period. The wealth management institution stated in a report: "For the Trump administration, which is hoping for more aggressive easing policies under the nominee for Federal Reserve Chairman, Kevin Warsh, the situation could not be more challenging." They stated that Warsh is taking over the Federal Reserve at a time of the biggest division in 32 years, with the unprecedented situation of his predecessor Jerome Powell staying on as a board member, and unprecedented technological changes bringing uncertainty to the labor market.