Trump's Unexpected Remarks Shake Up Fed Chair Selection

President Donald Trump's recent comments have cast doubt on the selection process for a new Federal Reserve chair, previously expected to be Kevin Hassett. Trump's public support for Hassett complicates expectations, possibly benefiting Kevin Warsh amid growing political tension surrounding the investigation into the Fed's independence.

President Donald Trump has added a new twist to the ongoing search for a new Federal Reserve chair, suggesting he prefers to keep his top economic adviser, Kevin Hassett, at the White House. His unexpected remarks came during a White House event where he praised Hassett's recent television appearance.

The decision has sparked speculation that the favored candidate, Kevin Warsh, has seen his chances enhanced. Warsh, a former Federal Reserve governor, appears better positioned following controversy over Justice Department subpoenas involving current Fed Chair Jerome Powell, dragging the Fed into a rare political storm.

Analysts suggest the Trump administration's involvement with the Fed may compromise its independence, especially with Powell's term ending in May. Political maneuvers have deepened tensions, while Senate Republicans weigh the candidates. Warsh's traditional 'hawkish' stance could mean a future with less likelihood of interest rate cuts.

(With inputs from agencies.)