Overview
- Kevin Hassett said the Federal Reserve should cut rates and indicated he would accept a 25 basis‑point move, highlighting what he called growing committee openness to easing.
- U.S. Treasury yields have risen since reports named Hassett the frontrunner, signaling concern that easier policy could revive inflation risks.
- European Central Bank officials warned that a politically influenced Fed could spur capital flight from the U.S., weaken the dollar, and raise global inflation.
- Wall Street banks and asset managers relayed reservations to the Treasury about Hassett’s potential appointment, while some analysts doubt he could marshal the FOMC for aggressive cuts.
- The White House plans to announce a Fed chair pick in early 2026, and any nominee would require Senate confirmation as Jerome Powell’s term ends in May 2026.