Bond Investors Cast Doubt on Hassett as Fed Chair

Group 1 - The consensus is that Jay Powell may consider staying on as a governor even after his chairmanship ends next year, but there is speculation he might leave earlier [1][4] - The potential replacement for Powell is likely to be Kevin Hassett, and the Senate's confirmation of a new chair is crucial for the transition [5][2] - There is concern about a possible delay in the appointment and confirmation process, which could impact the Federal Reserve's operations [3][4] Group 2 - The market's reaction to news about Powell's potential replacement will be closely monitored, as a muted response could indicate a higher probability of Hassett's appointment [7][6] - The effectiveness of rate cuts in addressing affordability issues is questioned, particularly regarding their impact on the housing market and low-income households [8][10] - The traditional channel through which Fed policy affects Main Street, particularly via the housing market, is currently not functioning effectively due to high housing costs and demographic changes [9][11][12]