Overview
- President Trump told Kevin Hassett he wants to keep him at the White House, a public signal that shifted prediction markets to favor former Fed Governor Kevin Warsh over Hassett.
- Kalshi and Polymarket odds moved quickly after the remarks, with Warsh around 59% and Hassett near the mid-teens, while Fed Governor Christopher Waller edged ahead of Hassett in some markets.
- The White House has completed final interviews, including BlackRock’s Rick Rieder, and Treasury Secretary Scott Bessent says a decision is expected by late January.
- The DOJ’s criminal investigation into Powell’s testimony about a $2.5 billion headquarters renovation has drawn bipartisan backlash, and Sen. Thom Tillis says he will oppose confirmations until the probe is resolved.
- Markets reflected the shifting expectations, with the 10-year Treasury yield rising to just over 4.2%, the dollar firming and gold falling, as investors priced a potentially less dovish chair; Powell’s term ends May 15, and he could remain a Fed governor.