US: Wall Street Cautions Trump Against Hassett As Fed Chair - Gasparino

Charles Gasparino at Fox Business reports on X that there is a 'last-ditch' effort by Wall Street and corporate America insiders to caution President Donald Trump against nominating National Economic Council Director Kevin Hassett as Federal Reserve Chair. 

• According to Gasparino, "They’re saying that his appointment sets the stage for higher long term interest rates because 1) The Fed will be a disorganized mess with leader lacking credibility inside 2) If Hassett manages to cut short term rates (as Trump wants) with divided vote because of sticky inflationary pressures, it will be perceived as political and inflationary."
• Gasparinmo notes, "Of course Trump will PROBABLY ignore all of the above but that’s the latest in the Fed race. Other candidates are Kevin Warsh and Fed gov Christopher Waller, both of whom could be fall back choices."
• At two White House events yesterday, Trump appeared to explicitly suggest that Hassett was on track to get the nod. First by saying that he had narrowed his shortlist down to one, and then singling out Hassett - who was in the room - as a “potential Fed chair.”
• Gasparino's comments appear to have prompted - or coincided with - a slight pullback in Hassett's implied probability of taking the nomination from 85% to 80%, per Polymarket.

Figure 1: Who will Trump Nominate as Fed Chair

Source: Polymarket