Speaking on Fox News:
- Fed has plenty of room to cut rates.
- Probably will need to do some more.
- Data could support 50 basis point cut
- You could definitely get to 50 or even more.
- The president will make his decision on Fed chair in a week or so.
- He is honored to be a candidate for the role.
Yesterday, Hassett struck a more Powell-like tone, emphasizing that monetary policy remains data dependent. By contrast, Fed Governor Miran and Treasury Secretary Bessent have leaned more openly toward pre-emptive rate cuts, arguing that slower growth and rising labor-market risks in the first quarter warrant earlier action. Both Miran and Bessent have also expressed confidence that inflation will decline sharply in 2026, reinforcing their case for easing sooner rather than later – and not so data dependent NOW.
Unfortunately, the key economic data—including employment and inflation—won’t be released until next week, leaving the market without the confirmation it needs. Those reports could easily swing expectations in either direction, especially if inflation comes in hotter or the labor market proves stronger than anticipated.
Meanwhile, the race for the next Fed Chair is accelerating. Kevin Hassett remains a leading contender for the role that opens in 2026, and President Trump is now interviewing finalists. Reports indicate that Kevin Warsh received the first interview, signaling he may be gaining traction.
Prediction markets reflect the shifting momentum
