U.S. Treasury investors raise "concerns" over Kevin Hassett nomination as Fed chair

As U.S. President Donald Trump publicly mentioned potential candidates for the next Federal Reserve (Fed) chair, some bond investors reportedly raised concerns about the possibility of Kevin Hassett (Kevin Hassett), chair of the White House National Economic Council (NEC), being nominated.

On the 3rd (local time), according to economic news channel Walter Bloomberg (Walter Bloomberg), some bond market participants conveyed to the U.S. Treasury worries that "Hassett could aggressively cut interest rates in line with President Trump's intentions."

The report has drawn attention amid an atmosphere of the selection process speeding up, with President Trump recently saying he is "interviewing new Fed chair candidates." Markets have been reacting sensitively because the next chair's stance could affect the path of interest rates, the dollar's value, and long-term Treasury yields.

In the bond market, there is growing speculation that if Hassett becomes the Fed's leader, the monetary policy stance could tilt more toward easing. Earlier, Reuters reported that "there are concerns in parts of the bond market that Hassett's inclination to cut rates could weigh on the dollar."

Hassett is regarded as an economic adviser close to the Trump administration. Foreign media explain he is considered a 'leading candidate' because he served as chair of the White House Council of Economic Advisers (CEA) in Trump's first term and currently serves as NEC chair coordinating economic policy.

However, there are views that it is uncertain whether the selection will actually lead to a nomination and Senate confirmation. The bond market is checking complex variables together, including not only the next Fed chair's policy stance but also controversies over the Fed's independence, future balance sheet policy, and the risk of inflation reacceleration.