Wall Street Insiders Warn Trump Against Picking Kevin Hassett as Fed Chair Over Independence, Inflation Risk and Market Turmoil

As reported by Fox Business’ Charles Gasparino on December 4, Wall Street insiders warn that a Trump administration nomination of Kevin Hassett to chair the Federal Reserve could elevate policy uncertainties at a critical juncture.

Critics contend Hassett’s former role as Chair of the Council of Economic Advisers may undermine Fed independence and dent credibility among policymakers and markets, which prize autonomous rate setting.

Analysts caution that appointing a politically connected chair could pressure inflation dynamics and push up long-term rates, with mortgage rates and consumer rates tethered to the 10-year Treasury yield.

Despite concerns, President Trump could opt to proceed regardless of market signals; other contenders discussed include Kevin Warsh and Christopher Waller, each offering a distinct policy stance.

In any outcome, the market seeks a credible, independent monetary framework to anchor expectations ahead of the midterm cycle, underscoring the strategic value of monetary policy credibility.