National Economic Council Director Kevin Hassett (left) and former US Federal Reserve President Kevin Warsh.
Reuters
Kevin Warsh has surged ahead of Kevin Hassett in a prediction market betting on who President Donald Trump will nominate as the next Federal Reserve Chairman, amid growing doubts within Trump’s orbit about Hassett’s candidacy.
As for Kalsi, traders on Monday named Mr. Warsh the narrow favorite to replace Jerome Powell, with a probability of nomination of about 46% compared to about 39% for Mr. Hassett. Just last week, Mr. Hassett’s probability was high at 77% and Mr. Warsh’s probability was low at 10%.
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The change in policy comes in the wake of renewed opposition to Mr. Hassett from senior officials with direct access to the president, the people said. Those advisers have expressed concern that Hassett, who currently chairs the National Economic Council, is seen as too close to President Trump.
This resistance may help explain the bout of uncertainty in the process earlier this month, when interviews with candidates in early December were abruptly canceled. At least in Warsh’s case, those interviews were later put back on the calendar and were held last week, officials said.
Warsh previously served on the Federal Reserve Board from 2006 to 2011 and has been seen as a reliable asset for Republicans. Mr. Hassett has been a fixture on President Trump’s economic team throughout both terms, but some advisers now worry that his proximity could undermine the Fed’s institutional standing.
Market activity accelerated late last week as President Trump introduced new ambiguity into the campaign. Trump previously told reporters he already knew who he would choose to chair the Fed, but on Friday he told the Wall Street Journal that Warsh had emerged as his frontrunner.
