Hassett's odds for Fed chair fall amid independence concerns, CNBC reports

Kevin Hassett, Director of the White House National Economic Council (NEC), is no longer the clear frontrunner to be President Donald Trump's nominee for the next Federal Reserve Chair, CNBC reported, citing multiple sources. According to the report, concerns have been raised among the president's aides that the close relationship between Trump and Hassett could compromise the Fed's independence. Some also project that the bond market could react negatively in the long term if Hassett is perceived as a pro-Trump figure, with potential for interest rate hikes depending on his approach to inflation. In a CBS "Face the Nation" interview last weekend, Hassett stated that while the president has a clear position, the Fed is an independent body that makes policy decisions based on data and consensus among FOMC members, not the president's views. Data from the decentralized prediction market Kalshi shows Hassett's nomination probability has fallen from over 80% earlier this month to 31%, while former Fed Governor Kevin Warsh's odds have risen to 52%.