US President Donald Trump said in an interview with The New York Times that the Federal Reserve has made a decision on the next chair, but has not yet named the nominee.
“I have a decision in mind, but I haven’t talked to anyone yet,” Trump said.
When asked if his chief economic adviser, Kevin Hassett, was being considered as a candidate to chair the Federal Reserve, President Trump replied, “I don’t want to say that.” But his statement that Hassett is “definitely one of my favorites” is notable.
Regardless of President Trump’s final choice, the new Fed chair will take office at a critical time. The Fed is at the center of President Trump’s unprecedented pressure to cut interest rates, reigniting debate over its monetary policy independence.
Meanwhile, Kevin Warsh has emerged as the front-runner for Fed chairman, according to prediction market Calcidata. Warsh has a 41% chance of being appointed, while Kevin Hassett has a 39% chance of being appointed. Current Federal Reserve Director Christopher Waller’s probability is calculated to be 12%.
*This is not investment advice.
