Warsh sprints ahead in Fed chair race, prediction markets show

President Donald Trump expressed his preference to keep National Economic Council Director Kevin Hassett in his current position as the top economic advisor. This statement could potentially impact the race to determine who will succeed Jerome Powell as the Federal Reserve chair.

Speaking at the White House, Trump acknowledged Hassett’s presence in the audience and commended him for his recent television appearance. He stated, “I actually want to keep you where you are, if you want to know the truth.” This indicates that Trump values Hassett’s role and may not be considering him for the position of Fed chair.

Hassett has been a frontrunner alongside former Fed Governor Kevin Warsh in the race for the central bank’s leadership. President Trump has been critical of the Federal Reserve under Powell’s leadership and has hinted at replacing him once his term ends in May. In addition to Hassett and Warsh, other contenders for the position include current Fed Governors Christopher Waller and Michelle Bowman.

While Trump has suggested that he will announce Powell’s successor this month, he has not specified a date for the decision. Trump expressed his desire to retain Hassett in his current role, indicating that he values his expertise and contributions to the administration.

Following Trump’s comments, traders on prediction market sites like Kalshi adjusted their bets, giving Warsh a 60% chance of securing the Fed chair position, compared to 16% for Hassett and 14% for Waller. This shift in betting odds suggests that Warsh may be emerging as the frontrunner for the position.

Despite the speculation, the final decision remains uncertain as Trump has been known to change course unexpectedly. Traders on platforms like Polymarket also reflect a similar trend, with Warsh leading the pack in terms of betting odds.

In conclusion, the race for the next Federal Reserve chair remains competitive, with Kevin Warsh emerging as a potential frontrunner. Trump’s comments regarding Hassett indicate a possible shift in dynamics, but the final decision is yet to be determined. Stay tuned for further updates on this developing story.

(Note: This article is based on information sourced from CNBC and Kalshi, and has been rewritten for a WordPress platform.)