Trump's Potential Successor to Powell Revealed

Trump's Fed Chair Candidate: President Trump has begun interviewing candidates to replace Jerome Powell as Fed chair, indicating he may have already chosen a preferred successor, with Kevin Hassett currently leading prediction markets at a 47% probability.

Hassett's Position and Views: Kevin Hassett, the National Economic Adviser, has publicly expressed his willingness to accept the Fed chair position and advocates for more aggressive rate cuts, positioning himself as a strong contender for the role.

Timing and Strategy: Although Powell's term lasts until May 2026, Trump may opt for a two-step approach by nominating a new Fed governor whose term expires in January, allowing for a gradual transition rather than an abrupt firing.

Monetary Policy Tensions: The upcoming December FOMC meeting is critical, as it will test the balance between aggressive rate cuts favored by Hassett and concerns from other Fed officials about the risks of reigniting inflation.