Trump Fed Chair Pick Tease Sends Yields Lower

Trump Fed chair pick tease pushed Treasury yields lower and focused traders on Kevin Hassett odds and the Senate confirmation path.

December 01, 2025·2 min read
View all news articles
Flat vector treasury note with softening edges symbolizing market repricing after Trump Fed chair pick and falling yields.

KEY TAKEAWAYS

  • Trump's unnamed Fed pick remark pushed markets to reprice the likely successor.
  • Prediction markets assigned roughly 80% probability to a single candidate.
  • The 10-year Treasury yield briefly fell below 4% and rates eased across the curve.

HIGH POTENTIAL TRADES SENT DIRECTLY TO YOUR INBOX

Add your email to receive our free daily newsletter. No spam, unsubscribe anytime.

Or subscribe with

President Trump said on Dec. 1, 2025, he has decided on the next Federal Reserve chair but declined to name the person, prompting markets to price Kevin Hassett as the frontrunner and sending the 10-year Treasury yield briefly below 4%.

Trump Announcement and Market Reaction

On Air Force One, Trump told reporters he knows who he will pick and that an announcement will be made, but he did not disclose the nominee’s identity. Following the remark, prediction markets assigned about an 80% probability to a single candidate. The 10-year Treasury yield briefly fell below 4%, and a recent Treasury auction was judged strong. Interest rates eased across the curve as traders repriced near-term policy expectations, factoring in the possibility of a successor aligned with the administration.

Shortlist and Confirmation Process

Treasury Secretary Scott Bessent began interviewing candidates after Labor Day 2025 and completed a five-person shortlist in late November, which he sent to the president. The list includes Kevin Hassett, director of the National Economic Council; Federal Reserve Governors Christopher Waller and Michelle Bowman; former Fed Governor Kevin Warsh; and Rick Rieder of BlackRock Inc. Bessent has repeatedly declined to accept the chair himself.

The nominee requires Senate confirmation to serve as Fed chair. If the White House selects an outsider, that person would typically begin a 14-year Fed governor term in February 2026. Jerome Powell’s current chair term ends in May 2026.

Trump has criticized Powell for not cutting rates quickly and expects his nominee to pursue easier policy. Hassett, a top prospect, has said he would be willing to serve if asked and has framed a nomination as aimed at lowering consumer borrowing costs. Analysts caution Hassett may face difficulty uniting the Fed’s rate-setting committee and could be more vulnerable to presidential pressure.

Bessent has said the president could announce a nominee before Dec. 25, 2025.

HIGH POTENTIAL TRADES SENT DIRECTLY TO YOUR INBOX

Add your email to receive our free daily newsletter. No spam, unsubscribe anytime.

Or subscribe with

Read other top news stories

Trump Media Interim CEO Kevin McGurn Named

Trump Media Interim CEO Kevin McGurn Named

Trump Media Interim CEO Kevin McGurn took the role April 21, 2026 and his interim status raises leadership and deal risk around the $6 billion merger.

SpaceX Cursor Acquisition Option Raises IPO Stakes

SpaceX Cursor Acquisition Option Raises IPO Stakes

SpaceX Cursor acquisition option pairs Cursor's developer reach with Colossus compute and could force IPO disclosure, shifting investor positioning.

Trump Spirit Airlines Aid Suggests Federal Help

Trump Spirit Airlines Aid Suggests Federal Help

Trump Spirit Airlines aid comments could pull the White House into a possible Spirit rescue, raising regulatory scrutiny and reshaping rescue talks.

Tesla Q1 2026 Earnings Margins and Inventory Risk

Tesla Q1 2026 Earnings Margins and Inventory Risk

Tesla Q1 2026 earnings preview sees automotive gross margin and a 50,363-unit inventory gap as low implied volatility may limit post-earnings moves.

Tractor Supply Earnings Fall; CEO Urges Action

Tractor Supply Earnings Fall; CEO Urges Action

Tractor Supply earnings showed weaker Q1 profitability and reaffirmed FY2026 guidance, leaving execution the near-term test for traders.

GE Aerospace Q1 Earnings Beat, Guidance Held

GE Aerospace Q1 Earnings Beat, Guidance Held

GE Aerospace Q1 earnings beat with strong orders; held 2026 EPS guide while warning higher jet fuel and geopolitical risk could hurt airline demand.