Former Fed Governor Kevin Warsh has emerged as the leading candidate to replace Fed Chair Jerome Powell. This comes as Kevin Hassett, who was in pole position before now, faces pushback from some of Trump’s close advisors on his candidacy.
Kevin Warsh Now Favorite To Become Next Fed Chair
Polymarket data show a 46% chance of Trump nominating Warsh to replace Powell. Meanwhile, Hassett has a 44% chance of getting the nod to lead the U.S. central bank. This marks a massive turnaround, as there was an 85% chance that Hassett would replace Powell earlier this month.
Crypto traders on Kalshi are also now heavily backing Warsh to become the next Fed chair. Data from the prediction platform shows a 52% chance of that happening, while Hassett has a 44% chance.
As CoinGape reported, the drop in Hassett’s odds began last week when Trump told the Wall Street Journal (WSJ) that Warsh was at the top of the list among the candidates to replace Powell. The former Fed governor had reportedly impressed the president following the interview he held last week.
Meanwhile, the Warsh’s flipping on Hassett today as the leading Fed chair candidate follows a CNBC report that some of Trump’s advisors have pushed back against Hassett’s candidacy. These advisors reportedly expressed concern that the National Economic Council director is too close to the president, a situation that could put the Fed’s independence at risk.
However, it is worth mentioning that Hassett had earlier emerged as the frontrunner to replace Powell partly due to his relationship with the U.S. president. Additionally, the National Economic Council director had on several occasions indicated he was open to supporting larger rate cuts if he replaced Powell.
As CoinGape reported, Trump’s recent statement made it clear that lowering rates was a litmus test to decide who would become the next Fed chair. The U.S. president revealed that Warsh largely agrees with his stance on monetary policy, suggesting that the Fed governor is also open to lowering rates just like Hassett.