Trump’s Remarks Spark Shift in Fed Chair Race
Former Federal Reserve Governor Kevin Warsh has taken the lead in the race for central bank chair following comments from President Donald Trump, according to a closely watched prediction market. Traders on Kalshi have pushed Warsh ahead of his closest competitor, National Economic Council Director Kevin Hassett, with a 59% chance of getting the job, compared to just 14% for Hassett.
Trump’s remarks, delivered on Friday morning, implied that he would prefer to keep Hassett in his position as top economic advisor. “I see Kevin’s in the audience, and I just want to thank you. You were fantastic on television today,” Trump said during remarks in the White House. “I actually want to keep you where you are, if you want to know the truth.” These comments led traders to adjust their bets, with Warsh now leading the pack.
Prediction Markets React to Trump’s Comments
Traders on Kalshi and Polymarket have expressed a similar dynamic, with Warsh leading Hassett 58% to 11% and Fed Governor Christopher Waller at 16% and 18% respectively. BlackRock fixed income chief Rick Rieder and Fed Governor Michelle Bowman, the other two candidates considered finalists, are given little odds. Trump has indicated he will name a Powell successor this month but hasn’t provided a specific date, as Powell’s term as chair ends in May.
Turning to White House Chief of Staff Susie Wiles, Trump said, “We don’t want to him lose [Hassett], Susie, but we’ll see how it all works out.” This statement further solidified Warsh’s position as the front-runner in the race. As recently as Wednesday, Warsh and Hassett were in a near dead heat, but Trump’s comments have significantly altered the prediction markets.
Conclusion and Next Steps
With the Fed chair race heating up, traders and experts will be closely watching Trump’s next move. The President’s comments have provided valuable insight into his thought process, but the final decision remains uncertain. For more information on the developing story, readers can follow reputable news sources and prediction markets for updates.
Smart Tip for Readers
To stay informed about the Fed chair race and its potential impact on the economy, readers can set up news alerts for key terms like “Fed chair” and “interest rates” and follow trusted financial news sources, such as CNBC, to receive timely updates and analysis.
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