Warsh sprints ahead in Fed chair race following Trump comments on Hassett, prediction markets show

• Traders on Kalshi prediction market moved Warsh well ahead of his closest competitor Hassett following Trump's remarks
• Trump publicly thanked Hassett during White House remarks and stated 'I actually want to keep you where you are'
• Warsh is a former Federal Reserve Governor, positioning him as an experienced candidate for the central bank's top role

Summary:

Kevin Warsh, former Federal Reserve Governor, has emerged as the leading candidate for Fed Chair following President Trump's Friday comments that effectively ruled out Kevin Hassett, Director of the National Economic Council, for the position.

Key Developments:

Trump publicly indicated his preference to retain Hassett in his current role as top economic advisor during White House remarks. "I actually want to keep you where you are, if you want to know the truth," Trump stated while thanking Hassett for a television appearance.

Following these comments, prediction market Kalshi showed Warsh significantly advancing ahead of Hassett, who had been considered his closest competitor for the Fed Chair position.

Market Implications:

The clarity on Trump's Fed Chair preference reduces uncertainty around future monetary policy leadership. Warsh, who served as Fed Governor from 2006 to 2011, is known for his views on financial regulation and monetary policy. His emergence as frontrunner provides markets with better visibility on potential Federal Reserve direction once current leadership transitions.

The prediction market movement suggests traders are rapidly pricing in Warsh's increased likelihood of appointment, which could influence expectations around future interest rate policy and regulatory approaches.

Context:

This development comes as markets closely watch for Trump's nomination to lead the Federal Reserve, a decision that will significantly impact U.S. monetary policy direction. The situation remains fluid as Trump has not made an explicit final announcement, though his Friday remarks strongly signal his thinking on the position.