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Hassett Backs 25-Basis-Point Cut as Fed Chair Frontrunner Faces Pushback

Prediction markets now make him the favorite, with the White House eyeing an early‑2026 announcement.

Overview

  • Kevin Hassett said the Federal Reserve should cut rates next week and predicted a 25 basis‑point move, adding that he ultimately wants much lower rates over time.
  • PGIM’s Gregory Peters said markets doubt Hassett has the committee credibility to deliver rapid easing, noting Treasury yields climbed after reports he is the frontrunner.
  • European Central Bank officials warned that a politically influenced Fed could trigger capital flight, weaken the dollar and raise global inflation risks.
  • Wall Street executives and corporate CEOs have urged President Trump not to select Hassett, arguing he lacks independence and credibility with Fed staff.
  • Trump says he will name his pick in early 2026 and has settled on a finalist, with other contenders reported to include Christopher Waller, Michelle Bowman, Kevin Warsh and Rick Rieder.