Trump’s Fed Chair Pick Nears: Hassett Leads, Markets React

Trump is conducting final interviews for Fed chair candidates, with Kevin Hassett leading the shortlist. The decision, closely watched by markets, could impact U.S. monetary policy and rate cuts.

Donald Trump is set to begin final interviews for candidates to replace Federal Reserve Chair Jay Powell, with Kevin Hassett emerging as the frontrunner. The shortlist includes Kevin Warsh, Christopher Waller, Michelle Bowman, and Rick Rieder. Hassett’s strong alignment with Trump’s push for lower interest rates has raised concerns among investors about the future independence of the Fed and the potential for aggressive rate cuts, which could impact inflation and the Treasury market. Despite Hassett’s lead, the administration insists the decision is not final, with further interviews planned. The outcome is closely watched by financial and crypto markets, as the next Fed chair will influence U.S. monetary policy and regulatory direction. Prediction markets have shifted in Hassett’s favor, but the final decision is expected before year-end, with the new chair likely to take office after Powell’s term ends in May.