CNBC: Hassett's Appointment as Fed Chair Interfered by Trump Loyalists

BlockBeats News, December 15, according to CNBC citing sources, Kevin Hassett, once regarded by the market as a "quasi-candidate" for Federal Reserve Chair, has recently faced doubts from senior figures who can directly influence former President Trump’s decisions.

The point of contention is: Hassett was initially seen as the strongest candidate to succeed current Chair Powell due to his close relationship with Trump, but now concerns have arisen for the same reason—being "too close to the President." This pressure may explain why candidate interviews were canceled in early December and then rescheduled (at least for Warsh, the interview was completed last week).

Trump previously told reporters that he had decided on a candidate for Federal Reserve Chair, but in an interview with The Wall Street Journal on Friday, he stated that former Federal Reserve Governor Kevin Warsh and Hassett had both become final candidates, which surprised the market. The probability of Hassett’s election on the Kalshi prediction market dropped in response.

"Both Kevins are excellent," Trump said.

As of Monday, Hassett still led on the Kalshi platform with a 51% probability, but this was a sharp decline from over 80% earlier this month; Warsh’s probability rose from about 11% in early December to 44%. The current momentum is more about boosting Warsh rather than criticizing Hassett. JPMorgan CEO Jamie Dimon praised both candidates at an event on Thursday, but some of his remarks led the audience to believe he favored Warsh, the former Federal Reserve Governor.