US President Donald Trump says he has already chosen the next Federal Reserve chair, but has stopped short of naming his preferred pick.“I know who I am going to pick, yeah. We’ll be announcing it,” Trump said on Sunday, speaking aboard Air Force One, Bloomberg reported.Behind the scenes, Kevin Hassett, the White House National Economic Council head, is strongly viewed by Trump allies as the clear favourite. He is the dominant name in the race to lead America’s central bank after Jerome Powell finishes his turbulent eight-year term in May 2026. Polymarket punters give him a 72% chance of getting nominated. Kevin Warsh, the banker and runner-up, has a 12% chance.Hassett’s popularity stems from his perceived alignment with the president’s conviction that the Fed is behind the curve, and said that if he were chair he “would be cutting rates right now” because “the data suggests that we should.”Why it mattersLower interest rates are a tailwind for riskier assets like cryptocurrency or tech stocks, because they push investors out of safe-haven assets like bonds.Hassett’s sudden rise to the top of Trump’s shortlist has turbocharged expectations for faster and deeper interest-rate cuts next year. Investors believe a Fed led by him would act aggressively to lower borrowing costs in a shift that could reshape everything from mortgages to crypto markets.US government bonds jumped last Monday after traders became convinced of the pick, signalling long-term investor confidence. The rush into Treasuries pushed the key 10-year yield down to 4%, its lowest point in a month.Treasury Secretary Scott Bessent, who has been involved in managing the selection process, said in late November that Trump may announce the nominee before Christmas.To be sure, the official process to select a new Fed chair is not yet finished. Trump’s nominee will have to win confirmation from the Senate.And Hassett used his Sunday appearance on CBS’ Face the Nation to push back on suggestions he is the frontrunner, calling the reports a “rumor.” But Hassett also drew attention to what markets did the moment speculation escalated in favour of his candidacy. “We had a great Treasury auction, interest rates went down,” he said, adding that Americans should expect Trump to choose someone who will help deliver “cheaper car loans and easier access to mortgages at lower rate.”Lance Datskoluo is DL News’ Europe-based markets correspondent. Got a tip? Email at lance@dlnews.com.US President Donald Trump says he has already chosen the next Federal Reserve chair, but has stopped short of naming his preferred pick.“I know who I am going to pick, yeah. We’ll be announcing it,” Trump said on Sunday, speaking aboard Air Force One, Bloomberg reported.Behind the scenes, Kevin Hassett, the White House National Economic Council head, is strongly viewed by Trump allies as the clear favourite. He is the dominant name in the race to lead America’s central bank after Jerome Powell finishes his turbulent eight-year term in May 2026. Polymarket punters give him a 72% chance of getting nominated. Kevin Warsh, the banker and runner-up, has a 12% chance.Hassett’s popularity stems from his perceived alignment with the president’s conviction that the Fed is behind the curve, and said that if he were chair he “would be cutting rates right now” because “the data suggests that we should.”Why it mattersLower interest rates are a tailwind for riskier assets like cryptocurrency or tech stocks, because they push investors out of safe-haven assets like bonds.Hassett’s sudden rise to the top of Trump’s shortlist has turbocharged expectations for faster and deeper interest-rate cuts next year. Investors believe a Fed led by him would act aggressively to lower borrowing costs in a shift that could reshape everything from mortgages to crypto markets.US government bonds jumped last Monday after traders became convinced of the pick, signalling long-term investor confidence. The rush into Treasuries pushed the key 10-year yield down to 4%, its lowest point in a month.Treasury Secretary Scott Bessent, who has been involved in managing the selection process, said in late November that Trump may announce the nominee before Christmas.To be sure, the official process to select a new Fed chair is not yet finished. Trump’s nominee will have to win confirmation from the Senate.And Hassett used his Sunday appearance on CBS’ Face the Nation to push back on suggestions he is the frontrunner, calling the reports a “rumor.” But Hassett also drew attention to what markets did the moment speculation escalated in favour of his candidacy. “We had a great Treasury auction, interest rates went down,” he said, adding that Americans should expect Trump to choose someone who will help deliver “cheaper car loans and easier access to mortgages at lower rate.”Lance Datskoluo is DL News’ Europe-based markets correspondent. Got a tip? Email at lance@dlnews.com.