US President Donald Trump has made Kevin Hassett and Kevin Warsh his top picks for the Federal Reserve chair position, sparking speculation on prediction markets.
In an interview with CNBC’s Squawk Box, Trump praised both Hassett and Warsh, citing their potential to lead the central bank. The odds on Kalshi, a prediction market, have shifted significantly in favor of Hassett and Warsh. They now have a 35% chance each of becoming the next Fed chair, while current governor Christopher Waller’s odds have decreased to 15%.
Trump has been critical of Federal Reserve Chair Jerome Powell for keeping interest rates high, and Hassett and Warsh have both advocated for lower rates. The move allows Trump to install someone new on the Fed Board of Governors, with the possibility of them taking over as chairman when Powell’s term expires in May 2026.
Source: https://www.cnbc.com/2025/08/05/prediction-markets-see-hassett-and-warsh-as-fed-chair-frontrunners-as-trump-talks-up-the-kevins.html