Bond investors warned of Hassett as potential Fed chair over rate-cut fears, FT reports
NegativeFinancial Markets
- Bond investors have raised alarms regarding the potential appointment of Kevin Hassett as the next chair of the Federal Reserve, expressing concerns that his decisions on interest rates may be influenced by former President Trump. This warning comes amid fears of a possible interest rate cut, which could have significant implications for the bond market.
- The apprehension surrounding Hassett's potential leadership at the Fed highlights the ongoing tension between market expectations and political influences in monetary policy. Investors are particularly wary of how such influences could affect interest rate decisions.
- This development occurs against a backdrop of declining U.S. private payrolls, which may bolster the case for a rate cut, as well as a shift in sentiment among major brokerages anticipating a December rate cut. The convergence of these factors underscores the fragility of the current economic landscape and the critical role of the Fed in navigating these challenges.
— via World Pulse Now AI Editorial System
