Wall Street and U.S. business insiders are blocking Trump from appointing Hassett as Federal Reserve Chairman.

According to an article published on the X platform by Charles Gasparino, a Fox Business reporter, Wall Street and business insiders are making a final push to warn Trump about the problems that would arise from choosing Kevin Hassett as Federal Reserve Chairman. The argument from Wall Street and the business community is that, given the political nature of Hassett's job (Director of the National Economic Council) and his past experience, he lacks credibility among Fed staff and the markets, which seek independence from the Fed. Appointing Hassett would lead to higher long-term interest rates and throw the Fed into disarray. If Hassett manages to lower short-term interest rates through a split vote amid persistent inflationary pressures (as Trump desires), this would be seen as political interference and could trigger inflation. Mortgage and consumer rates are benchmarked against 10-year Treasury bonds, and a surge due to inflation concerns could slow the economy as the midterm elections approach. Of course, Trump may ignore all of the above and proceed unilaterally. Other candidates vying for the Fed chairmanship include Kevin Warsh and Fed Governor Christopher Waller, both of whom are potential contenders.