1. Kevin Hassett and Kevin Warsh are competing for Fed chair. 2. Hassett currently leads prediction markets for nomination. 3. Wall Street is concerned Hassett might align with Trump. 4. Hassett emphasizes the Fed's independence and data-driven decisions. 5. Trump has mentioned Warsh as a strong candidate as well.
FAQ
Why Neutral?
The leadership change at the Fed may lead to stable interest rates, affecting S&P 500. Historically, Fed leadership changes have yielded varied stock market responses, often pausing trends until clarity emerges.
How important is it?
The selection might influence monetary policy, a key concern for market participants. S&P 500's performance is sensitive to interest rates and Fed policies, though uncertainty limits immediate impact.
Why Short Term?
Changes in Fed leadership can cause immediate volatility in financial markets while the long-term effects depend on policy direction. For instance, markets reacted quickly to Yellen's and Powell's confirmations.