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Wall Street Making Final Efforts to Prevent Trump from Appointing Hassett as Fed Chair
Summary: According to Fox Business reporter Charles Gasparino, sources within Wall Street and the American business community are making final efforts to warn Trump about the potential issues of choosing Kevin Hassett as the Federal Reserve Chair. The argument from Wall Street and the business community is that due to Hassett's political role as the Director ...
According to Fox Business reporter Charles Gasparino, sources within Wall Street and the American business community are making final efforts to warn Trump about the potential issues of choosing Kevin Hassett as the Federal Reserve Chair. The argument from Wall Street and the business community is that due to Hassett's political role as the Director of the National Economic Council and his past experiences, he lacks credibility among Fed staff and in the market, with the market seeking Fed independence. Appointing Hassett could lead to long-term interest rate increases and chaos within the Fed. If Hassett manages to lower short-term rates through split votes under stubborn inflation pressure (as Trump desires), it would be seen as political interference and could trigger inflation. Mortgage and consumer rates are based on 10-year Treasury yields, and if they spike due to inflation concerns, it could lead to an economic slowdown close to the midterm elections. Of course, Trump may choose to ignore all of the above and act unilaterally. Other candidates vying for Fed Chair include Kevin Warsh and Fed Governor Christopher Waller, who are also potential choices.
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Link: Wall Street Making Final Efforts to Prevent Trump from Appointing Hassett as Fed Chair [Copy]
