The Federal Reserve chair transition has entered its final stage, and Hassett has emerged as a strong candidate. He is the former director of the National Economic Council at the White House and has a close relationship with Trump, being seen as someone who can best implement Trump's economic ideas. If he takes the helm at the Federal Reserve, Trump's long-held desire to control the direction of monetary policy will come closer to realization for the first time.
Hassett's position: hawkish dove.
He is unreserved in his stance on interest rate cuts—stating openly in an interview:
"If I were the chair of the Federal Reserve right now, I would immediately cut interest rates because the data has provided the answer."
This statement carries significant weight: not only does he support lowering rates, but he also believes that the current situation is already "overdue for a rate cut."
From my perspective, if Hassett officially takes over, the Federal Reserve's years-long hawkish cycle will likely come to an end. A "hawkish dove" advocating for a swift and substantial shift to easing will become the new head of the Federal Reserve, which will rapidly elevate market expectations for interest rate cuts.
Trump's open strategy: bringing monetary policy back under control.
This is not "backroom maneuvering," but a completely open "strategy." Trump wants to place someone at the Federal Reserve who he truly trusts and who is willing to execute his economic agenda—and Hassett is clearly the most ideal candidate.
Transaction layer reminder: stay alert.
Trump's style of appointing people is always full of surprises, and the final outcome remains uncertain. But the current signals are already clear:
Market sentiment towards interest rate cuts may soon be completely ignited.
