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Don’t hold your breath for a Trump administration decision on 2026 biofuel-blending quotas before year-end.
Reuters on Friday reported that the decision is likely to be punted into next year, extending the uncertainty surrounding a high stakes policy for U.S. farmers and the agricultural sector. The delay raises expectations that the administration will attempt to strike a broad agreement between rival oil and agricultural interests – a tough task, the report said.
The EPA told Reuters it was still reviewing public comments on volume requirements, offering no guidance on timing. The volume mandates administered under the Renewable Fuel Standard require the blending of biofuels such as ethanol and biodiesel into the fuel supply.
Uncertainty over biofuel demand has been seen as a headwind for corn and the soy complex.
Kevin vs. Kevin: Trump narrowing down Fed chair candidates
President Donald Trump on Friday told the Wall Street Journal he was leaning toward appointing either former Fed governor Kevin Warsh or National Economic Council Director Kevin Hassett to take over as chair of the Federal Reserve next year.
The remarks come a few weeks after news reports said Hassett had emerged as the frontrunner for the job.
“I think you have Kevin and Kevin. They’re both – I think the two Kevins are great,” Trump said. “I think there are a couple of other people that are great.”
Bond investors had expressed reservations about Hassett, who is viewed as among the most likely to follow Trump’s demands for a significant slashing of interest rates, potentially fueling inflation. Misgivings about Hassett emerged as the Treasury Department sought feedback on candidates in one-on-one conversations with executives at top Wall Street banks, asset-management firms and major players in the U.S. debt market, the Financial Times reported earlier this month.
Trump told the Journal that Warsh had agreed with his call for lower interest rates. Trump has repeatedly attacked Powell for not moving more quickly or aggressively to cut rates and publicly pondered attempting to fire him. Trump told the Journal that the president should be consulted when it comes to setting interest rates.
“It doesn’t mean – I don’t think he should do exactly what we say. But certainly we’re – I’m a smart voice and should be listened to,” he said. Trump told the Journal he thinks the fed funds rate should be at 1% “and maybe lower than that” a year from now, saying rate cuts would help reduce the cost of financing $30 trillion in U.S. government debt. The Fed on Wednesday voted 9-3 to cut the fed-funds rate by a quarter of a percentage point to a range of 3.5% to 3.75% – a three-year low.
Big bond managers were particularly worried about the prospect of a dovish Fed chair willing to indiscriminately cut rates in the event inflation in the U.S. rises next year, the FT had reported. The Fed’s preferred inflation gauge remained at 2.7% in August, well above the central bank’s 2% target.
The Fed signaled it was setting a high bar for further cuts and interest-rate market participants have scaled back expectations for rate cuts in 2026.