Bond investors have warned the US Treasury about Kevin Hassett’s potential appointment as Federal Reserve chair, amid fears that he would cut interest rates aggressively to please Donald Trump.
The Treasury last month solicited feedback on Hassett and other candidates from executives at Wall Street banks, asset management firms and other participants in the debt market, according to people familiar with the conversations.
The discussions took place before Treasury secretary Scott Bessent held his second round of interviews with candidates to replace Jay Powell as Fed chair when his term expires in May 2026, these people said.
Hassett, the White House’s senior economic official, has emerged as a frontrunner for the position in recent weeks, as Trump and Bessent have cut the list of candidates from 11 initial contenders.
Trump said on Tuesday he planned to name his pick for Fed chair “early” next year and signalled Hassett was a “potential” contender.
