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Kevin Hassett – frontrunner to lead the fed
Reporting suggests that Kevin Hassett, the white house economic adviser, has surged ahead to be the most likely candidate to replace Jerome Powell as fed chair term ends in May 2026. Hassett gained favor among Donald trump circle between the others candidate Kevin Warsh, Christopher Waller, Michele Bowman.
We could see a substantial shift in the current monetary policy.
Hassett shows his support of pro-growth tax cuts, looser regulatory policy.
Market may spook if investors fear policy will become politicized.
What could change under Hassett
If Hassett is appointed, we could see substantial shift in the current monetary policy, known of his strong support of lower interest rates and a more friendly-growth approach. Many participants view that Hassett is far more dovish than the current Fed leadership. Markets are paying close attention not just because of a change in fed leadership signals for disruption, but because it might accelerate rate cuts or loosen monetary policy sooner than under Powell, this quick shift could boost risk assets and inflation.
Hassett monetary policy agenda
As Scott Bessent (U.S Treasury Secretary) said that the final candidate section may happen in the coming weeks, analysts rise probability to have the final selection even before Christmas the timing is important as we are waiting to see the Santa rally for this year with new changing at the administration. Hassett shows his support of pro-growth tax cuts, looser regulatory policy, He says, “The question is, has the current central bank been as independent, transparent, as we would like?”
Risk & uncertainties
Installing a politically aligned growth and cut oriented fed chair could stir controversy over central bank independence which may market spook if investors fear policy will become politicized, rather than data driven. Even if appointed, translating rhetoric into action is not automatic. Economic conditions, inflation, global headwinds, and internal Fed dynamics could all influence whether aggressive rate cuts or dovish moves materialize.
