Boston Fed President Susan Collins appeared on Bloomberg's Big Take podcast to discuss recent FOMC dissent votes, Kevin Warsh's nomination to succeed Powell, and her outlook for where the federal funds rate could settle by end of 2026. Collins has been among the more cautious voices on the committee, and her public commentary on dissent suggests internal disagreement over the pace of any future cuts or hikes remains material.
For Armada's traditional desk, the Warsh transition introduces policy uncertainty that directly feeds into SOFR expectations and term repo pricing. A hawkish Warsh Fed could keep rates elevated longer, tightening MMF and hedge fund appetite for duration, while dissent signals may widen bid-ask spreads around FOMC windows. Desk should revisit rate assumptions embedded in current term sheet pricing.