Overview
- In a new interview, President Donald Trump said his nominee for Federal Reserve chair must lower interest rates immediately, confirming it as a litmus test.
- Trump again criticized Jerome Powell over rate policy, while reporting notes Powell intends to serve out his term through May 2026 despite pressure to step down.
- Kevin Hassett is reported as the leading contender to replace Powell, with Polymarket data showing high odds that he will be nominated.
- Polymarket traders are betting on multiple 2026 easing paths, including reported probabilities for three or four quarter-point cuts next year.
- The legal fight over Fed governance continues as the Supreme Court has allowed Governor Lisa Cook to remain on the Board at least until January pending arguments.