Core Viewpoint - The appointment of Kevin Hassett as the potential next Federal Reserve chair is influencing market expectations for interest rate cuts, leading to a decline in Treasury yields, particularly the 10-year yield reaching 4% for the first time in a month [1][2]. Group 1: Market Reactions - Traders are increasing their bets on lower interest rates over the next year, anticipating that Hassett will implement aggressive reductions in borrowing costs as advocated by President Trump [2]. - The 10-year Treasury yield decreased by two basis points to 4%, marking the lowest level since the Fed's meeting in late October [2]. - Following the news of Hassett's potential appointment, the dollar fell to a session low before recovering some losses [4]. Group 2: Economic Context - The movement in Treasuries was prompted by data indicating labor-market weakness and a decline in oil prices [5]. - Federal Reserve Governor Stephen Miran supported the outlook for rate reductions, emphasizing the need for significant cuts in the US economy [5]. Group 3: Future Implications - The addition of Hassett to the Fed board would result in two voting members advocating for proactive rate cuts, increasing the likelihood of 50 basis point moves in the post-Powell era [6][7]. - Treasury Secretary Scott Bessent is overseeing the search for Powell's replacement, with an announcement expected by December 25, and five candidates in consideration [7].