Kevin Hassett's candidacy for the Federal Reserve chair, once seen by the market as almost a sure thing, has received some pushback by high-level people who have the ear of President Donald Trump, according to sources familiar with the matter.There's concern that the National Economic Council director is too close to the president, the sources said, something that ironically made him the frontrunner to replace current chair Jerome Powell in the first place. The pushback could help explain why interviews wit ...

The Federal Reserve’s early reappointment of its regional bank presidents took markets by surprise and eased concerns the central bank would soon lose its independence as President Donald Trump continues demanding steeper rate cuts. On Thursday, the Fed announced 11 out its 12 bank presidents were re-upped, leaving out the Atlanta Fed chief role as Raphael Bostic had announced previously that he’s stepping down. The presidents’ five-year terms were due to end in February, and prior reappointments have t ...

Amid the The big breakthrough took place in 1951. For decades before then, the Fed functioned, to a large extent, as an adjunct of the Treasury and the After major political battles culminated in a March 1951 agreement, now known as the Treasury-Fed accord, the Fed ensured that it would no longer be required to do the bidding of the Treasury and White House, but would operate according to its own lights, as an independent central bank. It could raise short-term interest rates to curb inflation if it deem ...

Barron's spoke with former colleagues of the leading candidate to replace Chair Jerome Powell. ...

Um, we're bringing bring in a a guest here that I think has been listening to everything. Dana Peterson is the conference board's uh chief economist. Where do you come down on I don't know.Pick pick your poison uh Dana on on those two gentlemen. They agree on some things, but not on everything. >> Well, I think it's a little bit of everything in terms of the outlook for the economy and concerns about Fed independence and interest rates.Um but you know just talking about today I think the Fed will just go ah ...

Um, we're bringing bring in a a guest here that I think has been listening to everything. Dana Peterson is the conference board's uh chief economist. Where do you come down on I don't know.Pick pick your poison uh Dana on on those two gentlemen. They agree on some things, but not on everything. >> Well, I think it's a little bit of everything in terms of the outlook for the economy and concerns about Fed independence and interest rates.Um but you know just talking about today I think the Fed will just go ah ...

Economic Data and Labor Market - The jobs data presents a mixed picture, with initial claims decreasing by 27,000 to 191,000, but layoffs are still up 24% year-over-year according to the Challenger report, indicating a lack of demand and supply equilibrium in the job market [3][4][5] - Retail data from Black Friday showed year-over-year growth of around 4-5%, suggesting that consumer spending remains active despite mixed economic signals [7][8] Federal Reserve and Monetary Policy - The upcoming Federal Reserve meeting is expected to focus more on the communication and implications of monetary policy rather than immediate actions, with potential dissenting votes anticipated [10][11] - There is ongoing speculation regarding the nomination of Kevin Hassid as the successor to Jerome Powell, which could influence future Fed decisions [12][14] Market Dynamics - The stock market and bond market appear to be in conflict, with the stock market anticipating a reacceleration of growth while the bond market suggests inflationary pressures [15][16] - Stability in bond yields is seen as crucial for maintaining equity market momentum, with the Russell index showing a 3.5% increase over the past month [18][19] Legislative and Regulatory Environment - The government funding deal only extends through January 30, 2026, raising concerns about potential shutdowns and the urgency for bipartisan agreements on healthcare subsidies [23][24] - The level of dysfunction in Congress is highlighted by high-profile resignations, indicating potential challenges in governance and legislative effectiveness moving forward [25]

Well, let's get some more perspective on the fixed income markets now. And joining us from Hong Kong is Greg Peters, CIO for Public and Private Fixed income at PGIM. Greg, thanks so much for joining us today.And I do want to kick off with that data that we saw out of the US. The ADP November payrolls slipping pretty much seems to be the consensus that that's nailed on a Fed rate cut for next week. But what kind of commentary do you expect to hear now around further easing.Yeah, So I do think, you know, we w ...

Core Viewpoint - The potential appointment of Kevin Hassett as the next Federal Reserve Chair raises concerns about his ability to implement aggressive interest rate cuts desired by President Trump, as his influence within the committee may be limited [1][2][3]. Group 1: Appointment and Influence - Gregory Peters, co-chief investment officer at PGIM Fixed Income, expressed skepticism about Hassett's credibility within the Federal Reserve committee, questioning whether he can drive consensus for rate cuts [3]. - The bond market's reaction, indicated by rising Treasury yields, suggests a lack of confidence in Hassett's potential appointment and its implications for monetary policy [3][4]. Group 2: Market Reactions and Implications - The discussions around Hassett's candidacy have led bond traders and macro fund managers to assess the potential impact on global markets, highlighting the sensitivity of markets to changes in Fed leadership [4]. - Despite Hassett's coyness about his candidacy, market participants have begun to position themselves for a possible increase in the pace of rate cuts, reflecting a shift in sentiment following his emergence as a frontrunner [5].

Labor Market Insights - Jobless claims reported at 216,000, a decrease from the revised 222,000 the previous week, indicating a stable labor market with low unemployment rates [2] - Continuing claims slightly increased to 1,960,000 from the revised 1,953,000, suggesting that while new claims are low, there is a slight uptick in ongoing unemployment [2] Economic Indicators - Durable goods orders rose by 0.5%, aligning with expectations, while capital goods shipments and non-defense orders showed a significant increase of 0.9%, three times the anticipated growth [3][4] - The strong business spending reflected in the September report indicates resilience in the overall economy, with specific categories of spending yet to be detailed [4] Federal Reserve Dynamics - The market appears unconcerned about the Federal Reserve's independence despite ongoing discussions about presidential influence, as the current Fed leadership remains unchanged [5] - Future nominations for the Fed chair will be critical in determining whether the new appointee will prioritize presidential directives or economic stability, which may reignite debates on Fed independence [6]