Trump appears to rule out Hassett as Fed chairman in his comments.
Trump said Hassett was good on television today and that he “might want to keep him where he is.” He added that “we’ll see how it goes.”
Trump told Hassett at a health care event: “I actually want to keep you where you are, if you want to know the truth.” »
Some Republican senators have expressed reservations about Hassett because he is very close to Trump and therefore could be more difficult to confirm than the other three nominees.
We saw some US dollar buying in this stock as it highlights that the Fed’s decision is all about political credibility. Among the candidates, Hassett is seen as the least independent, who in turn is the most dovish due to Trump’s long-standing desire to cut rates.
On a related note, gold is quickly making headlines and hitting its lowest level since Tuesday, dropping quickly from $35 (now down from $60).
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Hassett served as the White House spokesman on economic issues as director of the National Economic Council. He frequently appears to talk about economic policies, including tariffs.
In the betting markets, Hasset is down to 17%, down from around 35% earlier in the day.
The prospect of a less conciliatory Fed presidency also weighs slightly on the stock markets, whose bond markets are little changed.
The betting favorite for the position is Kevin Warsh, who was the runner-up to Powell during Trump’s first term. He has lobbied tirelessly for the position for years after leaving the Fed as governor following a row over quantitative easing during the financial crisis.
Earlier today, a report noted that Trump’s team also liked Blackrock’s bond CIO Rick Rieder, in part because he had no ties to the Federal Reserve.
For what it’s worth, I don’t necessarily view Trump’s comments as too revealing. At the same time, the sharp declines in precious metals following the comments indicate that much depends on the decision. However, the dollar’s rise after the headlines could be an indication to Trump that Hassett is the right choice, as the president wants a lower dollar.
Treasury Secretary Bessent said a decision would be made before the end of the month.
