President Donald Trump has initiated a process of selecting his successor to Federal Reserve Chair Jerome Powell, even though Powell’s term isn’t due to expire until May 2026. The move to select the next Fed chair has been fueled by speculation and betting markets where Kevin Hassett is now favored for the position. 47% probability according to prediction markets, Hassett’s preference for deeper rate cuts places him at the forefront in a race that could significantly impact monetary policy decisions. The December FOMC meeting is expected to be pivotal in this transition. Hassett’s views on rates align with his desire for more aggressive easing measures. He believes that larger interest rate cuts are warranted, even if they deviate from the typical 25-bps reduction anticipated by Fed officials. This stance highlights a potential divergence between those who advocate for cautious economic management and those who favor aggressive easing strategies.