Fed Chair Race Tightens as Hassett Dismisses Political Influence Concerns

As the contest to lead the U.S. Federal Reserve narrows to two frontrunners, Kevin Hassett is pushing back against claims that President Donald Trump could exert influence over monetary policy. Speaking on CBS’ Face the Nation, Hassett stressed that Fed decisions would remain data-driven and firmly in the hands of the FOMC, regardless of political opinion.

With an announcement on the next Fed chair expected in mid-January, the race appears to be between Hassett and former Fed governor Kevin Warsh. Prediction markets have reflected the shifting dynamics, with odds moving after Trump publicly praised Warsh, even as Hassett continues to lead on some platforms.

The debate comes at a sensitive moment for markets. Following the Fed’s recent 25-basis-point rate cut, risk assets—including crypto—have remained muted, underscoring how closely investors are watching the next chapter in U.S. monetary leadership. As expectations build around rate policy in 2026, the choice of Fed chair is becoming a defining macro narrative.

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