Dec 3 (Reuters) – Bond investors have expressed concerns to the U.S. Treasury that Kevin Hassett could aggressively cut interest rates to align with President Donald Trump’s preferences, the Financial Times reported on Wednesday, citing several people familiar with the conversations.
The discussions with executives at major Wall Street banks, asset management giants and other big players in the U.S. debt market took place in November, before Treasury Secretary Scott Bessent held his second round of interviews with candidates to replace Jerome Powell, the report said.
Reuters could not immediately verify the report. The White House and Treasury did not immediately respond to Reuters’ requests for comments.
The bankers and investors were worried that Hassett could agitate for indiscriminate rate cuts even if inflation continues to run above the Fed’s 2% target, the report added.
Members of the Treasury Borrowing Advisory Committee were among those consulted, FT said, adding that when Hassett met the group earlier this year, he focused on White House priorities, including Mexican drug cartels, rather than the market.
“The president will continue to nominate the most qualified individuals to the federal government, and until an announcement is made by him, any discussion about potential nominations is pointless speculation,” a White House spokesperson told the newspaper.
Trump on Tuesday said he will announce his pick to succeed Powell as Fed chair early next year, extending a months-long selection process despite previously claiming he had already decided on the candidate.
Trump said that a potential Federal Reserve chair was present as he introduced White House economic advisor Kevin Hassett at a White House meeting.
(Reporting by Bipasha Dey in Bengaluru; Editing by Daniel Wallis)
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