Overview
- Trump said he will announce Jerome Powell’s successor early next year and introduced National Economic Council Director Kevin Hassett as a “potential Fed chair,” sending Kalshi odds near 85%.
- Traders ramped up SOFR futures and curve bets for earlier and deeper easing after Hassett emerged as the favorite, with the 10-year Treasury yield around 4.08% after dipping below 4% last week.
- Bond investors and Wall Street executives cautioned the Treasury that a Hassett-led push for aggressive cuts could undermine credibility and lift long-term yields, according to the Financial Times reporting cited by Reuters.
- Banks and analysts stress limits to any immediate policy shift because FOMC votes constrain a chair’s sway and Powell remains chair through May 2026, with potential to stay as a governor until 2028.
- Treasury Secretary Scott Bessent has overseen a narrowed finalist field and arranged meetings with Vice President JD Vance, and Bloomberg has reported unconfirmed discussions about moving Bessent to lead the NEC if Hassett is nominated.