Wall Street Issues Emergency Halt: Why Has Trump's Preferred Candidate for Fed Chair Sparked Widespread Outrage?

Question

[Crypto World] On December 4th, news broke that the old guard on Wall Street is desperately trying to persuade Trump—not to make Kevin Hassett the Chairman of the Federal Reserve.

Why? The core issue is simple: he’s too politically charged. Hassett is currently serving as the Director of the U.S. National Economic Council, which is a purely political position. Wall Street and the business community are worried that if he joins the Fed, the internal staff won’t buy in, and the market will be even less convinced that he can maintain independence.

What’s even more concerning is the potential domino effect. If Hassett really gets the job and, following Trump’s wishes, rushes to cut interest rates before inflation is under control—how will the market react? Political interference, and inflation could explode. If the 10-year Treasury yield spikes (remember, mortgages and consumer loans are pegged to this benchmark), the economy could stall altogether, right in time for the midterm elections. Isn’t that just digging a hole for themselves?

Of course, it’s still unclear whether Trump will take this advice. The shortlist also includes Kevin Warsh and current Fed Governor Christopher Waller, both of whom are considered safer bets. How will this personnel battle ultimately play out?

OnchainArchaeologist · Accepted Answer

Wall Street chickened out? Haha, that's hilarious. Hassett really is too politically charged. The Fed still needs to maintain its independence, otherwise it's just going to create more trouble for the markets.

ClassicDumpster · Answer

Haha, these Wall Street guys are getting anxious. If Hassett really takes the position, it's game over.

A rate cut feels good for a moment, but inflation will be a disaster—who will take the blame then?

Honestly, it's still politics hijacking the economy; the market isn't buying it.

Whether Trump listens to advice or not just depends on his mood.

OnchainDetectiveBing · Answer

Haha, this is hilarious. Wall Street is scared, huh? Hassett really is playing a bit wild with this move.

But honestly, cutting rates before inflation is under control? I truly don't get this operation. When yields spike, mortgage interest rates will shoot up, and ordinary people will get fleeced.

Whether Trump listens to advice is the real key...

SignatureCollector · Answer

What is Wall Street afraid of? If Trump wants someone, he gets them. When inflation explodes, they'll just blame the Fed again. This trick has been played to death.

CryptoDouble-O-Seven · Answer

What is Wall Street afraid of? Simply put, they're afraid of messing things up. If Hassett listens to Trump, inflation could rebound in no time—who's going to take the blame then?

zkProofGremlin · Answer

Hassett is indeed too tightly bound. If the Federal Reserve gets politically hijacked, it's doomed.

GigaBrainAnon · Answer

Wall Street is really freaking out, it's honestly laughable. Hassett is just a political tool; what does the Fed even want him for? There's no independence left at all. Might as well just cut rates forever.

¯\_(ツ)_/¯ · Answer

Haha, Wall Street chickened out this time, afraid politicians will mess up the Fed? To put it bluntly, they're just scared of inflation coming back and their own wallets taking a hit.

This guy Hassett really reeks of politics. If the Fed gets messed with and Treasury yields soar, both retail investors and institutions will pay the price.

Whether Trump listens to advice is the real question. Feels like he's still the type to do things his own way.

If the 10-year Treasury yield surges, mortgage rates will skyrocket too. Buying a house now really needs careful consideration.

The Fed's independence is something that really can't be compromised. Once it becomes a political tool, the whole market's confidence is done for.

But then again, these old foxes on Wall Street have done plenty of shady things themselves. It's actually pretty funny to see them panic now.

Hassett's position might be in jeopardy, but if Trump really pushes through, we'll just have to see how the market reacts next.