Fed Chair Candidate Changes: Hasset May Drop Out, Wosh Becomes the Favorite

BlockBeats News, January 19 — Kevin Hassett, the White House economic advisor and director of the National Economic Council, recently stated publicly that Trump is more likely to want to remain in his current White House position. This statement was interpreted by the market as a sign that he is essentially withdrawing from the race for the next Federal Reserve Chair.

After Trump publicly sent this signal, market expectations quickly adjusted. Data from Kalshi and Polymarket show that the probability of former Fed Governor Kevin Wash being appointed as the next Fed Chair has surged to about 60%, clearly leading; Hassett’s chances have fallen to approximately 15%–16%, with incumbent Governor Christopher Waller at around 13%–14%. Previously, Wash and Hassett were considered evenly matched.

Analysts point out that Wash has become the “clear frontrunner” for the first time, but Trump’s unpredictable style on personnel issues means the final outcome remains uncertain. Currently, other main candidates include Waller and BlackRock executive Rick Reider.

Meanwhile, a judicial investigation into the Federal Reserve headquarters renovation project has added uncertainty to the chair selection process and has reignited market concerns about the Fed’s independence. Treasury Secretary Yellen downplayed the impact, stating that the market is generally stable, and indicated that the Senate is expected to accept Trump’s final nominee.

The current Fed Chair Jerome Powell’s term will end on May 15. Trump has said he will announce a successor within this month but has not provided a specific timetable.