CICC: If Hassett becomes Fed Chair, it could cause US Treasury yields and the dollar to initially fall and then rise.

According to a research report by CICC, as reported by Odaily Planet Daily, under the baseline scenario, if Hassett becomes the new Federal Reserve Chairman, it may cause US Treasury yields and the US dollar to fall first and then rise, which would be generally beneficial to US stocks.

From a timeline perspective, Trump will announce the nomination of a new chairman in early 2026. For Hassett, he needs to be nominated as a member of the Federal Reserve Board of Governors and confirmed by the Senate, then nominated as chairman and confirmed again. He will officially become chairman after the current chairman Powell's term expires in May 2026, and may begin to lead the FOMC meeting as early as June.

The first quarter of next year is a crucial period for influencing market expectations after the new chairman's nomination. If Hassett's statements are overly dovish, a temporary unexpected drop in US Treasury yields and the dollar cannot be ruled out. However, as long as it doesn't significantly escalate to the point of "loss of independence concerns," the realization of expectations coupled with the recovery of the US economy could lead to an upward trend in US Treasury yields and the dollar. (Jinshi)