Trump supports Hassett and Warsh for Fed chair

Trump highlights Hassett and Warsh as potential replacements for Powell amid market speculation.

Hassett and Warsh emerge as Trump’s favorites for Fed chair

President Donald Trump's recent remarks on CNBC's "Squawk Box" have sparked interest in prediction markets regarding candidates for the next chair of the Federal Reserve. Trump expressed support for Kevin Hassett, director of the National Economic Council, and Kevin Warsh, a former Fed governor, as possible successors to Jerome Powell. Other names mentioned include Christopher Waller, a current Fed governor, and Treasury Secretary Scott Bessent, who has opted out of the race. Trump's commentary emphasized the strengths of both Hassett and Warsh, saying, "Sometimes they're all very good, until you put them in there, and then they don't do so good."

President Trump's backing of Hassett and Warsh signals a potential shift in the Fed's leadership, which may align monetary policy more closely with his administration’s economic agenda. This move raises questions about future directions for the central bank and its independence. The reaction from markets suggests that investors are interpreting these endorsements as indicators of a significant policy change ahead, which could impact monetary stability and economic forecasts. As speculation heightens, the dynamics between political interests and economic principles are brought into sharp focus.

Highlights

The implications of these potential appointments could resonate throughout financial markets.