Kevin Warsh Fed Chair odds jump after Trump’s remark on Hassett
The Federal Reserve, the central bank of the United States, has been at the center of attention in recent months, with the term of current Chair Janet Yellen set to expire in February 2018. The search for her replacement has been a topic of much speculation, with several candidates being considered for the top job. In a recent development, Kevin Warsh, a former Fed governor, has seen his odds of becoming the next Fed Chair jump significantly after a remark by US President Donald Trump.
On Friday, Trump stated that he wants Kevin Hassett, the current Chairman of the Council of Economic Advisers, to remain in his current role at the White House. This comment has been interpreted as a sign that Hassett is out of the running for the Fed Chair position, paving the way for other candidates to take the lead. As a result, prediction markets have boosted Kevin Warsh’s odds of becoming the next Fed Chair, with Warsh now leading the betting on platforms such as Kalshi and Polymarket with nearly 60% odds.
The development has sent shockwaves through the financial markets, with investors and analysts eagerly awaiting the announcement of the next Fed Chair. Trump has stated that he has made his decision and will announce it this month, adding to the sense of anticipation. The Fed Chair plays a crucial role in setting monetary policy, and the appointment of a new chair can have significant implications for the economy and financial markets.
Warsh, a former Fed governor, has been considered a top contender for the job, along with other candidates such as Jerome Powell, a current Fed governor, and John Taylor, a Stanford University economist. Warsh’s experience at the Fed, as well as his views on monetary policy, are seen as key factors in his favor. He has been a vocal advocate for a more hawkish approach to monetary policy, which has resonated with some Republicans who are eager to see a more aggressive approach to inflation.
The remark by Trump on Hassett has been seen as a significant development in the search for the next Fed Chair. Hassett, who has been a key advisor to Trump on economic policy, was considered a dark horse candidate for the Fed Chair position. However, with Trump’s comment that he wants Hassett to remain in his current role, it appears that Hassett is no longer in the running.
The implications of Warsh’s potential appointment as Fed Chair are significant. As a hawk, Warsh is likely to take a more aggressive approach to monetary policy, which could lead to higher interest rates and a stronger dollar. This could have significant implications for the economy, particularly for sectors such as housing and autos, which are sensitive to interest rates.
In addition, Warsh’s appointment could also have significant implications for the financial markets. A more hawkish approach to monetary policy could lead to higher bond yields and a stronger dollar, which could impact the stock market and other asset classes. Investors and analysts will be closely watching the development, as the appointment of a new Fed Chair can have significant implications for their investment portfolios.
In conclusion, the remark by Trump on Hassett has sent shockwaves through the financial markets, with Kevin Warsh’s odds of becoming the next Fed Chair jumping significantly. With Warsh leading the betting on platforms such as Kalshi and Polymarket, it appears that he is now the front-runner for the job. The implications of Warsh’s potential appointment are significant, with a more hawkish approach to monetary policy likely to have significant implications for the economy and financial markets. As the announcement of the next Fed Chair is expected this month, investors and analysts will be closely watching the development, eager to see who will take the reins at the Fed.
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