Trump Leaning Toward Warsh or Hassett for Fed Chair: WSJ

Core Viewpoint - The race for the next Federal Reserve chair is narrowing down to two candidates: Kevin Hassett and Kevin Warsh, with Warsh gaining ground on Hassett as the preferred choice by the president [1][3]. Candidate Profiles - Kevin Warsh is perceived as more hawkish compared to Kevin Hassett, who is seen as closely aligned with the president's views [4]. - Both candidates will join a Federal Reserve that already has members appointed by previous administrations, which may limit their influence in the short term [5]. Upcoming Events - The first Federal Reserve meeting with the new chair is scheduled for June 17, which is anticipated to significantly impact market expectations regarding interest rate cuts, with odds shifting from 20% to 50% for a rate cut in June [6]. Potential Changes to the Federal Reserve - There are discussions about the possibility of changing the makeup of regional Fed presidents, which would require congressional action [7][8]. - The administration's ability to further influence the Federal Reserve may depend on ongoing legal cases regarding the president's authority to appoint and remove governors [7][8].