Fed Chair Race Takes Sudden Turn: Hassett Hints at Exit, Warsh's Odds Surge
White House economic adviser Kevin Hassett indicated that President Trump is likely to keep him in his current role, effectively removing him from contention for the next Federal Reserve Chair. This development has shifted the odds in the race to succeed current Chair Jerome Powell, with former Fed Governor Kevin Warsh now emerging as the clear favorite. Prediction markets show Warsh’s probability rising to 60%, while Hassett and Fed Governor Christopher Waller have fallen to around 15%. Another candidate, Rick Rieder of BlackRock, is also in consideration, with some supporters believing he may have a smoother path to Senate confirmation.
The selection process, led by Treasury Secretary Steven Mnuchin, has gained additional complexity due to a Justice Department investigation into the Fed’s headquarters renovation. Powell has accused the DOJ of using the probe to pressure the central bank for rate cuts, raising concerns about political interference in Fed independence. Despite the controversy, Mnuchin expressed confidence that the Senate would confirm any of the four candidates under consideration. Powell’s term ends on May 15, and Trump has said he will announce his nominee this month.
marsbit01/19 05:28
