📢The race for the chairmanship of the Federal Reserve intensifies as Hassett denies concerns of political interference
With the competition for the leadership of the U.S. Federal Reserve narrowing down to two candidates, Kevin Hassett responds to claims suggesting that President Donald Trump could influence monetary policy. During his appearance on CBS's Face the Nation, Hassett emphasized that the Federal Reserve's decisions will remain data-driven and under the control of the Federal Open Market Committee (FOMC), regardless of political opinions.
With the announcement of the next Federal Reserve chair expected in mid-January, the race appears to be limited to Hassett and Kevin Warsh, the former governor of the Fed. The prediction markets have reflected these shifts, as the odds changed following Trump's public praise of Warsh, while Hassett remains ahead on some platforms.
This controversy comes at a sensitive time for the markets. After the Fed's recent rate cut of 25 basis points, high-risk assets—including cryptocurrencies—have remained subdued, highlighting investors' anticipation for the upcoming chapter of U.S. monetary policy leadership. With expectations rising regarding interest rate policy in 2026, selecting the Fed chair has become a central macro narrative.
