URGENT UPDATE: Wall Street executives are making an aggressive appeal to President Donald Trump to reconsider his potential appointment of Kevin Hassett as the next chair of the Federal Reserve. According to sources familiar with the situation, this outreach comes amid rising concerns about Hassett’s credibility following his political role as the chief of the National Economic Council (NEC).
Insiders warn that Hassett’s partisan background could jeopardize the Fed’s independence during a critical economic period. The pressure from Wall Street highlights a growing anxiety regarding the impact of this appointment on market stability. Executives fear that if Hassett is appointed, it could lead to a spike in long-term Treasury yields, particularly the 10-year yield, which is pivotal in determining mortgage and consumer credit rates.
Market analysts stress that an increase in long-term yields could tighten financial conditions, especially ahead of the upcoming midterm elections, potentially slowing down economic growth. The apprehension surrounding Hassett’s appointment is palpable; sources indicate that Wall Street is particularly concerned about the optics of such a choice.
Despite this pushback, Trump is likely to follow his instincts regarding the appointment, but the growing resistance underscores the urgency of the situation. Insiders also note that other candidates remain in contention, including former Fed governor Kevin Warsh and current governor Christopher Waller, both of whom may present a more favorable option in the eyes of Wall Street.
As the situation develops, all eyes will be on Trump’s decision-making process, with the potential for significant implications for the economy. Market participants are advised to stay alert for further updates on this pressing issue, as the ramifications of the Fed chair appointment could resonate throughout the financial landscape.
This critical moment in the Fed leadership race is not just about personnel; it reflects broader concerns about maintaining the integrity and independence of the central bank in the face of political maneuvering. The decision is expected to be announced soon, and the financial community is bracing for its impact.
Stay tuned for more updates as this situation unfolds.
