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Before we dive into the Fed Chair race, there's one piece of fresh news shaping the entire conversation: the Fed cut rates yesterday - exactly as we expected. |
On December 10th, the central bank delivered its third straight 0.25% cut, bringing the benchmark range down to 3.50%-3.75%. |
But the headline isn't the cut itself - it's the crack running through the Fed. |
Three officials dissented, the biggest internal split in six years, signaling open disagreement about whether the economy is cooling too slowly… or too fast. |
And beneath the surface, the Fed moved to stabilize money markets by restarting targeted Treasury bill purchases. |
In other words: policy is loosening, but confidence inside the Fed isn't exactly rising. |
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The Federal Reserve might get a new Chairman in 2026. |
President Trump says he'll name his choice for Fed Chair early next year. The leading candidate? |
Kevin Hassett set to be the frontrunner. |
Kevin Hassett is currently the Director of the National Economic Council (NEC) of the United States. |
As we know, Treasury Secretary Scott Bessent under discussion to lead NEC. Role would be an addition to his current position. |
Let's deep dive. |
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Who Is Kevin Hassett? |
Think of Hassett as Trump's go-to economics guy. He currently leads the NEC.
Kevin Hassett also led the Council of Economic Advisers during Trump's first term and came back during COVID to help with policy. |
He's got the resume. PhD from Penn. Senior fellow at the American Economic Institute. The typical Washington credentials. |
But here's the thing: Hassett isn't like Jerome Powell, the current Fed Chair. Powell came from finance. |
Hassett is a policy economist who's spent years pushing for lower taxes and less regulation. |
That difference matters. |
| | | | Do you think Kevin Hassett would be a good choice for Fed Chair? | |
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Why This Pick Could Shake Things Up |
The Fed Chair job is huge. |
This person decides whether to raise or lower interest rates. Those decisions affect everything from your mortgage rate to whether companies hire or fire. |
Powell has kept rates high to fight inflation. It worked, but it also made borrowing expensive. Your credit card rates? Still brutal. Car loans? Same story. |
Hassett might take a different approach. He's argued for keeping rates lower to boost growth. That could mean cheaper loans. But it also risks letting inflation heat back up. |
| ❝ | | | "I spent five years working at the Fed. I worked closely with Alan Greenspan at times and have seen what's good and bad about the way the Fed people think." | | | | Kevin Hasseet, NEC Director |
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That's the tricky part about picking a new Fed Chair. You want someone who'll balance growth with stability. |
Too loose with rates, and prices spike. Too tight, and the economy stalls. |
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What Wall Street Thinks |
Markets don't love uncertainty. And a new Fed Chair means change. |
Some investors worry that Hassett might bow to political pressure. Trump has been vocal about wanting lower rates. He's called Powell names on social media. He's made it clear he wants a Fed Chair who sees things his way. |
The Fed is supposed to be independent. It makes decisions based on data, not politics. That independence keeps the dollar strong and keeps investors trusting the system. |
If markets think that independence is fading, things could get choppy. |
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The Real Question |
You might be thinking: Does this actually affect me? |
Yes. More than you'd expect. |
When the Fed changes leadership, the new person sets the tone for years. Powell's term doesn't end until May 2026, but Trump's already positioning his choice. |
If Hassett gets the job and cuts rates quickly, your savings account might earn less. But your mortgage could get cheaper. If he keeps inflation under control, your paycheck goes further. If he doesn't, you'll feel it at the gas pump and grocery store. |
It's all connected. |
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What Happens Next |
Trump says he'll announce his pick in early 2026. |
Then comes Senate confirmation hearings. Expect tough questions about independence, inflation targets, and how Hassett would handle the next crisis. |
Powell still has over a year left. But the shadow of his replacement already looms over Fed decisions. |
Markets will watch every speech, every hint about policy direction. And you should too. |
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The Bottom Line |
Picking a Fed Chair isn't just Washington insider baseball. |
It's about who controls the levers that move your financial life. |
Hassett brings deep policy experience and a close relationship with Trump. That could mean faster action on rate cuts and a more growth-focused Fed. |
But it also raises questions about independence and long-term stability. |
The next few months will tell us a lot. |
Watch what Trump says. Watch how markets react. |
And maybe most importantly, watch what Hassett himself says if he gets the nomination. |
Because whoever sits in that chair will be making decisions about your money for years to come. |
 | NEC Director Kevin Hassett | The David Rubenstein Show |
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| | | | What should we cover next? | |
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Disclaimer: This analysis is for educational purposes only and should not be considered investment advice. Always do your own research before making investment decisions. |
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