Overview
- Kevin Hassett is the reported frontrunner to succeed Jerome Powell, but President Trump has not made a formal nomination and has signaled an announcement in early 2026.
- Hassett said the Federal Reserve should cut interest rates next week and predicted a 25-basis-point move in remarks on Fox News.
- Treasury yields have risen since reports elevated Hassett’s odds, a shift investors link to concerns about faster rate cuts and future inflation.
- Wall Street banks and asset managers relayed concerns to the U.S. Treasury about Hassett’s potential appointment, and ECB officials warned that a politically influenced Fed could spur global inflation and destabilize markets.
- Market strategists question whether Hassett could secure FOMC consensus for rapid easing, as Powell is still expected to push through a quarter-point cut this week despite some dissent.