Anticipating Kevin Hassett: Fed's Upcoming Shadow Chair

Kevin Hassett emerges as the frontrunner for the Federal Reserve Chair, set to become the 'shadow Fed Chair' for five months if selected. His potential appointment, perceived as politically influenced, could signal policy shifts, with markets closely scrutinizing his views compared to exiting Chair Jerome Powell.

White House adviser Kevin Hassett is poised to become a key figurehead as the 'shadow Fed Chair' given his prospects for leading the Federal Reserve, should President Donald Trump choose him. His potential nomination raises questions about political influence on the traditionally independent central bank.

Deliberations continue as investors eagerly anticipate Trump's decision, expected before Christmas, with Hassett currently leading the pack. With current Fed Chair Jerome Powell out of favor, attention turns to how Hassett's policies might diverge from Powell's, particularly regarding interest rate strategies amid high inflation and economic growth.

The financial markets are on alert, considering the implications of Hassett's preference for lower rates and economic policies, and how their alignment or departure from Powell's could sway market stability. Discussions revolve around the increasing political imprints on an institution meant to maintain economic impartiality.

(With inputs from agencies.)