There is concern that Kevin Hassett is closely aligned with President Donald Trump|US Department of Labor
National Economic Council director Kevin Hassett is not the only contender for the Federal Reserve Chair position anymore after President Donald Trump told the Wall Street Journal that former Fed Governor Kevin Warsh is the top candidate alongside Hassett.
Trump’s comments boosted Warsh’s odds on prediction market Kalshi. Though Hassett remains the favorite with a 51% chance, it is a drop from over 80% earlier this month. Warsh has surged to 44%.
Current Fed Chair Jerome Powell’s term ends in May, and Trump is expected to announce his pick early next year.
Hassett has reportedly been challenged by some of Donald Trump’s advisors, who feel he is too closely aligned with the president.
The resistance stems from fears that the bond market could react negatively over concerns that the National Economic Council director is too close to Trump. This might eventually lead to higher long-term yields if investors worry he wouldn’t contain future inflation.
In response, Hassett recently emphasized the Fed’s independence, stating to CBS News that the president’s opinion “would have no weight” in central bank decisions.