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Hassett: President Has 'No Weight' on FOMC as Warsh Gains in Fed Chair Race

Powell seeks to hand off with inflation near 2% alongside a strong labor market.

Overview

  • On CBS, Kevin Hassett said he would gladly speak with President Trump daily but that the president would have no weight on interest‑rate votes by the FOMC.
  • Prediction‑market odds on Kalshi shifted, with Hassett’s probability falling to about 50% and Kevin Warsh’s rising to roughly 41%.
  • Trump has publicly named Hassett and Warsh as leading candidates and has indicated he plans to nominate a Fed chair in early 2026.
  • Powell, following the Fed’s Dec. 10 rate cut, reiterated he wants inflation moving back to 2% and the labor market strong before he departs in May 2026.
  • Concerns over Fed independence persist after a floated district‑residency rule for Fed presidents, while early reappointments of regional bank chiefs eased some worries.