Wall Street executives and major corporate insiders are making a final push to dissuade President Trump from appointing Kevin Hassett as the next Federal Reserve chair, according to people familiar with the outreach.
The info comes via Charles Gasparione, Greg had the info here earlier:
Their concern centres on Hassett’s perceived lack of credibility inside the central bank, given his political role as NEC chief and past partisan work, a profile they argue could undermine the Fed’s independence at a critical moment.
Sources say the worry is twofold:
- First, that a Hassett-led Fed could struggle internally, creating a “messy” policy process if staff and governors question his authority.
- Second, if Hassett were to push through short-term rate cuts despite sticky inflation, any split vote would likely be viewed as politically driven — feeding inflation fears rather than easing them.
Market participants warn that such optics could drive long-term Treasury yields higher, especially the 10-year, which anchors mortgage and consumer-credit rates. A spike in term premiums ahead of the midterms could tighten financial conditions and risk slowing the economy.
Trump is still expected to follow his own instincts on the appointment, but insiders say the pushback reflects mounting anxiety around the Fed race. Other candidates still in play include former Fed governor Kevin Warsh and current governor Christopher Waller.
