Overview
- President Trump publicly identified NEC Director Kevin Hassett as a potential successor to Jerome Powell, yet no formal nomination has been submitted.
- Prediction markets put Hassett’s odds near 80% as Treasury yields rose, reflecting concerns about perceived political influence on rate decisions.
- Bond investors privately warned Treasury officials that a Hassett-led Fed could push aggressive cuts, with some strategists cautioning that a market backlash could even derail a nomination.
- Fed rules require the chair to be chosen from sitting governors, there is no current Board vacancy, and Powell’s governor term runs to 2028, limiting immediate options.
- A Hassett pick could trigger White House reshuffles at the NEC and CEA, while legal uncertainty around Governor Lisa Cook’s lawsuit and the fact the chair has only one FOMC vote shape the policy outlook.