Markets Expect Hassett to Replace Powell, But Fed Easing Remains Minimal Into 2026

COINOTAG News, December 9, summarizes a Reuters perspective by Jamie McGeever: with Powell‘s eight-year tenure winding down next May, markets largely expect Kevin Hassett to take the helm from the Federal Reserve.

Yet pricing in the Fed funds futures curve signals traders do not foresee a sharply easier monetary policy under a Hassett-led board, or at least not in a manner aligned with Trump’s hints.

Markets price about 75 basis points of easing by year-end, equating to three 25-bp cuts; two are projected before Powell’s departure, leaving one cut after the new chair assumes office in late 2026.

The logic rests on a transition period characterized by inflation near 3% and a near-zero real policy rate, implying a monetary stance that remains broadly accommodative.