Trump says he's chosen the next Fed chair as cost-of-living squeeze intensifies

Economic Outlook - The Federal Reserve is expected to cut interest rates by 25 basis points next week, with investors looking ahead to the rate path in 2026 [1][13] - If the inflation picture improves, further rate cuts could lead to a bullish stock market, with projections for the S&P 500 to reach between 7,000 and 8,000 by the end of next year [14][15] Federal Reserve Leadership - Kevin Hassett is considered a strong candidate to replace Jerome Powell as Fed Chair, with expectations that he would focus on economic growth rather than aggressive rate hikes [3][4][5] - Hassett's approach is anticipated to prioritize price stability and full employment, moving away from the current Fed's focus on controlling inflation through rate increases [5][12] Consumer Behavior - Recent data indicates that consumers are actively shopping, as evidenced by the popularity of retail apps like Walmart and Best Buy during the holiday season [17][18] - The consumer sentiment appears to be optimistic about the economy's growth potential in 2026, with expectations of a 3 to 4% growth rate and improved job market conditions [20][21] Market Dynamics - The current economic environment is characterized by a booming economy with GDP growth rates around 3.9%, which is significantly higher than the previous 1-2% range [15] - The Fed's actions in raising rates have contributed to an affordability crisis for consumers, impacting their ability to manage debt and loans [12]