Market Doubts Hassett Can Deliver in Fed; Bessent Under Discussion to Also Lead NEC

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Dec 4, 2025

Valerie Teitel, a Bloomberg Markets reporter, shares insights on the skepticism surrounding Kevin Hassett's potential role as Fed Chair. Market experts worry he may lack the influence needed to implement aggressive rate cuts. Meanwhile, Stephen Carroll, a Brussels correspondent, dives into the EU's antitrust investigation of Meta's AI policies and the significant implications for tech regulation. The discussion highlights concerns over Meta's compliance and the potential financial repercussions as the regulatory landscape evolves.

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INSIGHT

Committee Limits On Fed Chair Power

Bond investors doubt Kevin Hassett can unilaterally force rapid Fed rate cuts because Fed policy is decided by committee.
Gregory Peters says Hassett may lack the committee credibility needed to drive consensus on aggressive easing.

INSIGHT

Possible Power Consolidation In White House

If Hassett becomes Fed chair, the White House is discussing moving Treasury Secretary Scott Bessent to also run the National Economic Council.
That dual role would consolidate economic oversight and increase Bessent's proximity to the president.

ANECDOTE

Hegseth Signal Chat Controversy

The Pentagon acting inspector general concluded Pete Hegseth risked endangering troops by sharing attack plans on Signal.
Hegseth disputes that, claiming he only sent harmless updates and could declassify material, but the IG report disagrees.

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On today's podcast:
1) Kevin Hassett may not have the ability to deliver the rapid pace of interest rate cuts President Trump would like, even if he is approved as the next Federal Reserve Chair, said Gregory Peters, co-chief investment officer at PGIM Fixed Income. Peters made the remarks amid rising talk that Hassett, the White House National Economic Council Director, may ease monetary policy aggressively to please Trump if he is picked to run the Fed. But the PGIM fund manager suggested that — since Fed rate decisions are ultimately decided by committee — Hassett won’t have the power to deliver on his own. Peters’ remarks were in response to a Financial Times report that bond investors, including those on the borrowing advisory committee, have voiced concerns to the US Treasury about Hassett’s potential appointment as the Fed chief.
2) President Trump’s aides and allies are discussing the possibility of making Treasury Secretary Scott Bessent the top White House economic adviser — in addition to his current job — should the president pick Kevin Hassett as the next chair of the Federal Reserve, according to people familiar with the matter. Tapping Bessent to lead the White House’s National Economic Council would allow him to consolidate oversight of Trump’s economic policies if Hassett — the current NEC director — becomes the next leader of the US central bank, an announcement Trump has hinted at in recent days. If Bessent is also named to the NEC, he would become the chief arbiter of the administration’s economic portfolio spanning the purview of both the Treasury Department and White House. It would also give Bessent a West Wing office, granting him even more physical proximity to the president.
3) The Pentagon watchdog concluded that Defense Secretary Pete Hegseth risked endangering American troops and the US mission against Houthi rebels in Yemen when he shared attack plans on the Signal messaging app, a person familiar with the matter said. The acting Pentagon inspector general’s classified report, delivered to a Senate committee yesterday, said Hegseth violated government policies by using his personal phone and Signal to transmit the information, which was marked “Secret.” The person describing the contents of the report asked not to be identified discussing private information.

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