The post U.S. Treasury Scott Bessent Drops FED Chair Timeline: Trump’s Decision Coming Soon appeared first on Coinpedia Fintech News
U.S. Treasury Secretary Scott Bessent appeared on Fox Business to discuss a range of topics, including Federal Reserve leadership, President Trump’s economic policies, and the outlook for U.S. growth.
Trump Comments on Kevin Hassett and Monetary Policy
Trump specifically talked about Kevin Hassett, saying:
Hassett had been seen as a possible candidate for the next Fed Chair and is known for supporting easier monetary policy, including lower interest rates. By saying Hassett would stay in his current role instead of moving to the Fed, Trump’s comments suggested that expectations for looser monetary policy might be lower.
Bessent Reveals Timeline for Trump’s Fed Chair Pick
Scott Bessent talked about President Trump’s comments on the Federal Reserve and possible leadership changes. He said the administration had reviewed 11 candidates and narrowed the list to four, but the final decision is up to the President. The choice will be based on who can bring stability to the Fed and work well with the Board.
US Treasury Secretary Scott Bessent confirmed that Trump will announce his pick for Federal Reserve Chair within days or weeks.
The decision could come either before or after the Davos summit, signaling that markets may soon receive clarity on the future direction of US monetary policy.
Speaking about the recent incident involving Fed Chair Jerome Powell, Bessent said he could not comment on any ongoing investigations. He also called for more transparency at the Fed, pointing out problems with inefficiency and cost overruns.
“The Federal Reserve has a special place with the American people. It has a lot of influence, but no real accountability. We need some sunshine here,” he said.
Prediction Markets Swing Toward Kevin Warsh
After President Trump suggested Kevin Hassett would remain in his current role at the White House, prediction markets quickly reacted. On Polymarket, Kevin Warsh’s chances of becoming the next Fed Chair jumped to around 60%, while Hassett’s fell to about 15%. Warsh, a former Federal Reserve Governor, is seen as more likely to win Senate approval and maintain the Fed’s independence. However, he is considered less likely to push for aggressive rate cuts, raising concerns that financial conditions could stay tighter for longer.
Global markets Dump
Markets sold off sharply after President Trump’s comments about Kevin Hassett and the Federal Reserve. Investors had been expecting Hassett to become the next Fed Chair, and he is known for supporting lower interest rates.
When Trump indicated Hassett would likely stay in his White House role instead, the chances of him leading the Fed fell sharply. This caused expectations for rate cuts and easier monetary policy to drop. In response, markets moved quickly: gold lost more than $500 billion in market value, Bitcoin and silver fell, and U.S. stock indices turned red.
Bitcoin price pulled back from a local high. BTC Price surged to about $98,000 on 15 Jan, then corrected to roughly $94,500.
Source: https://coinpedia.org/news/u-s-treasury-scott-bessent-drops-fed-chair-timeline-trumps-decision-coming-soon/
