"Does he have the credibility within the committee to drive consensus? We don't know that answer. I don't think he has that credibility. I think that's what the bond market is telling you."
"Hassett is widely considered a supporter of Trump's preference for lower rates."
Kevin Hassett is emerging as the frontrunner to replace Jerome Powell as Federal Reserve Chair. Treasury yields rose after reports of Hassett's candidacy, reflecting bond market skepticism about his ability to secure rapid rate cuts. Concerns were voiced by bond investors and members of the Treasury Borrowing Advisory Committee about risks to the Fed's political independence. Federal Reserve rate decisions are determined by committee, so chair influence depends on internal credibility and consensus-building. Traders and large macro funds are recalibrating positions to account for potential policy shifts amid President Trump's preference for lower interest rates and criticism of current Fed leadership.
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