Kevin Hassett’s candidacy for the Federal Reserve chair, once seen by the market as almost a sure thing, has received some pushback by high-level people who have the ear of President Donald Trump, according to sources familiar with the matter.
There’s concern that the National Economic Council director is too close to the president, the sources said, something that ironically made him the frontrunner to replace current chair Jerome Powell in the first place. The pushback could help explain why interviews with candidates were cancelled in early December and then, at least for Warsh, rescheduled for last week.
After telling reporters that he knew who he was going to pick for Fed chair, Trump surprised investors Friday when he told the Wall Street Journal in an interview that former Fed Governor Kevin Warsh had moved to the top of the Fed candidates list alongside Hassett. The comments sent Hassett’s odds diving on the Kalshi prediction markets.
“I think the two Kevins are great,” said Trump.
Hassett remains the favorite on Kalshi Monday with a 51% chance, although that’s down from a high above 80% earlier this month. Warsh’s odds are currently 44%, up from around 11% to start December.
