JPMorgan’s Dimon signals support for Kevin Warsh as Fed chair, FT reports

The Supreme Court is currently deliberating on its stance regarding the independence of the Federal Reserve, particularly in light of former President Donald Trump's efforts to increase his authority over independent officials. This includes potential actions to dismiss key figures within the Fed, which could significantly impact its operational autonomy.

Kevin Hassett, a close ally of former President Donald Trump, is emerging as a leading candidate for the position of Federal Reserve Chair as Trump prepares to finalize his selection. This follows a series of interviews and discussions within the administration, highlighting Hassett's strong support among Trump's inner circle.

Former President Donald Trump is reportedly leaning towards nominating either Kevin Warsh or Kevin Hassett to lead the Federal Reserve, as he prepares to finalize his selection for the position. This decision follows ongoing discussions about the future direction of U.S. monetary policy and the role of the Fed in managing economic conditions.

The Federal Reserve has recently cut interest rates for the third consecutive time, lowering the federal funds rate to a range of 3.5% to 3.75%. This decision raises questions about the Fed's capacity for further cuts as rates approach neutral levels, particularly in the context of the economic outlook for 2026.

On the Bloomberg Real Yield program, experts Alexander Wolf from J.P. Morgan Private Bank and Mike Contopoulos from Richard Bernstein Advisors discussed the Federal Reserve's upcoming rate decision, highlighting significant concerns surrounding corporate credit, including AI oversupply and private market distress.

The Federal Reserve has taken a unanimous decision to reappoint its regional bank presidents, a move interpreted as a strategy to insulate itself from potential leadership changes under former President Trump. This action is seen as a proactive measure to maintain stability within the institution amid ongoing economic challenges.

President Trump indicated he is leaning towards nominating either former Federal Reserve governor Kevin Warsh or National Economic Council Director Kevin Hassett to lead the Federal Reserve next year, emphasizing the importance of consultation on interest rates. This statement was made during an interview with The Wall Street Journal.

Former President Donald Trump has indicated that he believes the Federal Reserve should heed his advice as he considers candidates to replace Jerome Powell as chair, with former Fed governor Kevin Warsh at the top of his list. Trump emphasized his intelligence in economic matters during a recent interview, suggesting he has a significant role in shaping monetary policy decisions.