Markets warn US Treasury: nominating Hassett as Fed chairperson may lead to interest rate cuts

Bond investors have told the US Treasury that they are concerned about the possible nomination of Kevin Hassett as Federal Reserve chairperson, fearing that he will aggressively cut interest rates to accommodate Trump.
Treasury officials sought feedback on Mr. Hassett and the other candidates in one-on-one meetings with top executives at major Wall Street banks, asset management giants and other key players in the U.S. bond market, according to multiple people familiar with the matter.
These people said the discussions took place in November, before Treasury secretary Vincent Betson launched a second round of interviews to find a successor to Mr. Powell. The Treasury said it "regularly communicates with a broad range of market participants and investors on important developments and developments in the Treasury market and the broader financial marekt", adding: "In discussions with key stakeholders, the distribution of market expectations for asset-wide outcomes from the five potential Fed chairs is extremely narrow."
As the White House's chief economic officer, Hassett has emerged as a leading candidate for the position in recent weeks, after Trump and Bessant narrowed the list of potential candidates from an initial 11-person screening.
Mr. Trump said on Tuesday that he planned to unveil his nominee for Fed chair "early" next year and suggested Mr. Hassett was a "potential" contender, after which the dollar briefly fell.