Trump’s Fed Pick Hassett Faces Fierce Pushback From Top Advisers - 2025 Political Showdown
Washington's corridors are buzzing—and not with holiday cheer. A key Federal Reserve nomination just hit a wall of internal resistance.
The Resistance Forms
Top economic advisers are pushing back hard against the proposed Fed appointment. They're not just whispering in backrooms—they're mounting coordinated opposition that could derail the entire nomination process. This isn't about policy differences; it's about power dynamics playing out in real time.
Why This Matters Now
With 2025 monetary policy hanging in the balance, this internal clash reveals deeper fractures within economic leadership circles. The timing couldn't be worse—or better, depending on whether you're watching markets or political theater.
The advisors aren't holding back. They're deploying every tool in the Washington playbook: leaked memos, background briefings, strategic media placements. It's a masterclass in bureaucratic warfare, all while maintaining the polished veneer of professional disagreement.
What's really at stake? Control over the nation's monetary levers during a critical economic juncture. The pushback signals that some insiders believe this nomination could tilt the Fed's balance in dangerous directions—or at least directions they don't personally profit from.
Remember: this is how sausage gets made in DC. One person's 'principled stand' is another's calculated power play, usually decided over expensive steaks with someone else picking up the tab.
Uncertainties surrounding the fate of the next Fed chair spark concerns
Trump declared that he has already settled on who to serve as the chair of the Federal Reserve. This statement caught many by surprise after the president publicly claimed that Kevin Warsh, the former Fed Governor who is currently serving as the acting economic advisor to the Congressional Budget Office (CBO) and a member of the board of directors at UPS, ROSE as the leading contender alongside Hassett.
Trump’s remarks significantly affected Hassett’s odds, causing them to drastically drop on Kalshi prediction markets. Seeing how things turned out, the president argued, “I think the two Kevins are great.”
Nonetheless, Monday reports noted that Hassett is still in the lead on Kalshi, with his odds showing a 51% chance. However, this percentage illustrates a decrease from more than 80% odds raised earlier this month. Warsh, on the other hand, experienced a substantial increase in odds, rising to a 44% chance from around 11% at the beginning of December.
Analysts researched the situation and discovered that the current opposition appeared to be concentrated more on backing Warsh instead of criticizing Hassett. It also seems that apart from Trump, Jamie Dimon, the Chairman and CEO of JPMorgan Chase, preferred the former Fed governor. However, he positively talked about both Hassett and Warsh.
In the meantime, a reliable source highlighted that Hassett outperformed his competitors in the race by taking Powell’s position at the end of November. Notably, Powell’s term is scheduled to conclude in May next year.
Still, several sources emphasized that Hassett encountered some opposition as December progressed. Following this assertion, individuals raised concerns that the bond market might respond negatively if it perceived him as being too closely connected to the US president.
This perception could produce a contrary result from what Trump expects, potentially leading to a surge in long-term yields due to escalating fears that Hassett will not adopt strong measures to address inflation in the event of its increase.
Hassett embraced a stronger stance despite facing criticism
Responding to this criticism, Hassett embraced a stronger stance on the issue of Federal Reserve independence. He made this MOVE during an interview held this past weekend.
In an appearance on “Face the Nation,” Hassett shared a transcript stating that, ‘Trump has strong and well-reasoned ideas about what we should do. However, the Federal Reserve’s role is to remain independent and collaborate with the Board of Governors and the FOMC to reach a consensus on interest rates.”
This statement drew the attention of several reports, prompting them to reach out to Hassett for comment on the topic of discussion. When asked whether Trump’s opinion held the same essence as that of a central bank member voting, Hassett stated that it did not. He further explained that the president had no influence and his opinion only counted if it was rooted in solid data.
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