FT News Briefing Wall Street frets over Hassett as potential Fed chair
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Dec 4, 2025 
Kate Duguid, U.S. markets editor at the Financial Times, shares insights on the bond market's apprehensions regarding Kevin Hassett's candidacy for Fed chair, citing fears of dovish policies that could lead to inflation. Paola Tama, Brussels-based correspondent, discusses the EU's innovative proposal to use €210bn of frozen Russian assets to support Ukraine's recovery, navigating legal complexities and potential political hurdles. She highlights the need for consensus amid looming oppositions from member states like Hungary and Slovakia.
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Markets Fear A Dovish, Politically Aligned Fed Chair
- Bond-market investors warned the Treasury about Kevin Hassett's potential Fed chair nomination due to his perceived closeness to President Trump and dovish views.
- Markets fear an ultra-dovish chair plus rising inflation could trigger severe bond-market turmoil and economic problems.
Concerns Over Hassett's Consensus-Building Ability
- Kevin Hassett is viewed as a Trump loyalist who has publicly signalled willingness to cut rates significantly in the near term.
- Investors worry he may lack the consensus-building capacity required to lead the Federal Reserve effectively.
Don't Overestimate Market Influence On The White House
- Remember that the Fed chair appointment is the President's decision and market feedback may not change it.
- Do not assume market discomfort will necessarily derail a politically driven nomination process.