Trump Signals Potential Shift in Federal Reserve Leadership Choice as Kevin Hassett May Stay in Current Economic Role

At a White House event on Friday, donald trump stated that he may want to keep economic adviser kevin hassett in his current role rather than naming him as chair of the Federal Reserve in the US. The president expressed concern about losing the economic expertise of kevin hassett, whom many had previously viewed as the front-runner for the central bank position. donald trump remarked that kevin hassett is so good, adding that if he were to move him, he would lose a valuable asset, especially since the current leadership does not communicate as much. Specifically, the president said, "Kevin Hassett is so good. I'm saying, Wait a minute, if I move him -- these Fed guys, certainly the one we have now, they don't talk much. I would lose you."

This statement triggered an immediate shift in market expectations and raised structural questions about central bank independence from political pressure. While kevin hassett is known as an advocate for interest rate cuts, the uncertainty regarding his appointment led to a significant repricing across financial instruments. On the prediction platform Polymarket, the odds of kevin warsh becoming the next Fed chair jumped to 57% from 44%. Simultaneously, the US10Y rose 6.7 basis points to 4.227% from 4.16% late Thursday. The DXY gained 0.03% to reach 99.38, a six-week high, while the EURUSD fell 0.05% to $1.1599.