Kevin Hassett’s candidacy for Federal Reserve chair faces pushback from high-level figures close to President Trump. Concerns about his proximity to the president have raised questions about his independence. Trump surprised investors by naming former Fed Governor Kevin Warsh as a top candidate, impacting Hassett’s odds in prediction markets.

Despite initial favoritism, Hassett’s chances have dropped to 51% on Kalshi, while Warsh’s odds have surged to 44%. The pushback against Hassett seems more about promoting Warsh, with some influential figures like Jamie Dimon expressing support for the former Fed governor.

Reports in November indicated Hassett was the frontrunner to replace Jerome Powell as Fed chair. Concerns about Hassett’s ties to Trump have sparked resistance, with fears that the bond market could react negatively to a perceived lack of Fed independence. Hassett defended the Fed’s independence in a recent interview.

Hassett emphasized the importance of Fed independence and group consensus in setting interest rates, stating that Trump’s views should not carry weight in monetary policy decisions. The ongoing debate over the next Fed chair continues to impact market expectations and predictions.

Read more at CNBC: Hassett’s Fed chair candidacy received pushback from high-level people close to Trump, sources say