Overview
- Prediction markets swung toward former Fed governor Kevin Warsh after President Trump praised Kevin Hassett’s current role, with Kalshi pricing Warsh near 59% and Hassett near the mid-teens and Polymarket showing a similar shift.
- The Justice Department’s criminal investigation of Jerome Powell centers on his congressional testimony about a $2.5 billion Fed renovation, and Powell has publicly denounced the probe as politically motivated.
- White House interviews of finalists are complete, including an Oval Office session with BlackRock’s Rick Rieder, and a decision is expected by the end of January according to officials involved in the process.
- Senators Thom Tillis and Elizabeth Warren urged pausing Fed nominations during the probe, signaling a contentious confirmation path for any Trump pick.
- Some Wall Street executives privately warned the White House that perceived erosion of Fed independence could deter Treasury buyers and weaken the dollar.