## Trump’s Fed Chair Hints Send Prediction Markets Buzzing
President Trump’s recent comments on potential candidates to replace Jerome Powell as the Federal Reserve chair have sent ripples through prediction markets, with traders scrambling to assess the odds. Here’s a quick rundown:
- The Contenders: The article highlights several potential candidates, including National Economic Council Director Kevin Hassett, former Fed Governor Kevin Warsh, current Fed Governor Christopher Waller, and Treasury Secretary Scott Bessent.
- Trump’s Endorsements: Trump spoke favorably of Hassett and Warsh, while Bessent has reportedly removed himself from consideration.
- Market Reaction: Prediction markets, like Kalshi, reacted swiftly. Hassett and Warsh saw their odds of becoming the next Fed chair jump to 35% each. Waller’s odds decreased to 15% after not being mentioned.
- Interest Rate Implications: Both Hassett and Warsh have favored lower interest rates, a point of contention between Trump and current chair Powell.
- Other Potential Candidates: The article also mentions former economic advisor Judy Shelton (6% chance) and David Malpass (4% chance) as possibilities. Even Trump himself received a 1% vote.
- New Vacancy: The resignation of Fed Governor Adriana Kugler opens up a spot for Trump to appoint someone to the Board of Governors, potentially influencing the future chair selection.
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