Group 1 - Citigroup's strategists have exited a bet that long-term U.S. Treasuries would underperform short-term Treasuries amid increasing attacks on the Federal Reserve, indicating a reduction in concerns over the central bank's independence [1][3] - The initial recommendation was based on expectations that President Trump's tax and spending policies would inflate government debt, putting pressure on longer-term debt [1][3] - The strategists noted that supply concerns for long-term Treasuries have eased since the trade was initiated in May, and the recent FOMC meeting has marginally reduced worries about the Fed's independence [3] Group 2 - The recent FOMC meeting resulted in a 25 basis point rate cut, with a near-unanimous consensus that surprised some market participants [3] - The only dissenting vote came from a Trump-appointed governor who favored a larger cut, while other previously dovish members aligned with the majority this time [3] - The strategists observed that past easing cycles during soft landing scenarios have been relatively shallow, limiting the potential for a steepening of the yield curve [3]