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Growing Concerns About the Possible Choice of the New President of the Federal Reserve
According to information from BlockBeats, representatives from Wall Street and the U.S. business sector have expressed to President Donald Trump their discomfort with the potential appointment of Kevin Hassett to lead the Federal Reserve. The criticism focuses on his strongly political background as a former director of the National Economic Council and the perception that he lacks the necessary confidence among Fed professionals and financial market agents. Business leaders emphasize that the institution's autonomy is essential and warn that Hassett's appointment could result in higher long-term interest rates and generate internal instability.
If Hassett were to cut short-term rates in a close vote — according to Trump's wishes — even with inflation still pressured, this could be interpreted as undue political influence, further exacerbating inflation fears. As a consequence, mortgage rates and lines of credit, generally tied to the yield of 10-year Treasury bonds, could rise sharply, curbing economic activity on the eve of midterm elections. Despite the warnings, Trump may proceed with his choice. Among the other names considered for the position are Kevin Warsh and the current governor of the Federal Reserve, Christopher Waller, both seen as competitive candidates.
#TRUMP
#Fed $BTC
According to information from BlockBeats, representatives from Wall Street and the U.S. business sector have expressed to President Donald Trump their discomfort with the potential appointment of Kevin Hassett to lead the Federal Reserve. The criticism focuses on his strongly political background as a former director of the National Economic Council and the perception that he lacks the necessary confidence among Fed professionals and financial market agents. Business leaders emphasize that the institution's autonomy is essential and warn that Hassett's appointment could result in higher long-term interest rates and generate internal instability.
If Hassett were to cut short-term rates in a close vote — according to Trump's wishes — even with inflation still pressured, this could be interpreted as undue political influence, further exacerbating inflation fears. As a consequence, mortgage rates and lines of credit, generally tied to the yield of 10-year Treasury bonds, could rise sharply, curbing economic activity on the eve of midterm elections. Despite the warnings, Trump may proceed with his choice. Among the other names considered for the position are Kevin Warsh and the current governor of the Federal Reserve, Christopher Waller, both seen as competitive candidates.
#TRUMP
#Fed $BTC
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