As expectations for who will become the next Federal Reserve Chairman rapidly rise, prediction markets have emerged as the clear favorite to lead the Fed.
The latest data shows Hassett has a 55% chance of winning, followed by Christopher Waller with 19% and Kevin Warsh with 15%.
Hassett's rapid rise in profile is critical to the market. The economist is known for his long-standing advocacy for faster and deeper interest rate cuts, his pro-growth and market-friendly approach, his support for Fed independence, and his overall macro vision that is perceived as positive for both the stock and crypto markets.
As a result, recent trends in prediction markets have increased optimism, especially in risk assets. Investors are interpreting Hassett's approach to becoming president as a sign that easy monetary policy is more likely ahead of 2025.
Donald Trump has long been a harsh critic of current Federal Reserve Chairman Jerome Powell. It is widely believed that the new Fed chairman appointed by President Trump is likely to advocate for significant interest rate cuts.
*This is not investment advice.
