It's not just Trump: Bond investors can sway next Fed chair

Group 1 - The bond market has significant influence over U.S. government decisions, as evidenced by a recent spike in bond yields that led President Trump to pause tariffs [2][3] - President Trump is considering Kevin Hassett, a top economic aide, as a potential nominee to replace Fed Chair Jerome Powell, with bond investors closely monitoring the situation [3][4] - Bond yields rose by 0.1% in early December, reflecting bond traders' recognition of Hassett as the frontrunner for the Fed position [4] Group 2 - Concerns have been raised regarding Hassett's potential to blur the lines between the Federal Reserve and the executive branch, with bond investors warning against his nomination [6] - Hassett has criticized the central bank for allowing political factors to interfere with interest rate decisions, indicating a contentious relationship with the Fed [7] - The bond market remains relatively stable, with ten-year Treasury yields currently at 4.14%, suggesting no immediate concerns about significant market disruptions [8][9]