Earlier this week on January 16, President Donald Trump shook up markets with surprise comments about his economic adviser Kevin Hassett’s chances of becoming the next Fed chair. 📣
Investors had long eyed Hassett as the front-runner to succeed Jerome Powell, especially since he’s pushed for aggressive interest rate cuts. But at a White House event, Trump praised Hassett’s work leading the National Economic Council—and hinted he might stay put rather than move to the Federal Reserve. 🤔
The reaction was immediate:
- S&P 500, Dow Jones and Nasdaq slipped 📉
- VIX volatility index jumped, marking its strongest weekly gain in weeks ⚡
- Bonds also wobbled as yields rose and prices fell
On the commodities side, gold and silver retreated after earlier gains, as traders recalibrated their bets on future monetary policy. 💰
With uncertainty around the Fed’s next leader, risk assets are feeling fragile. Markets will be watching upcoming Fed minutes and any fresh signals from the White House—they could spark another wave of volatility in stocks, bonds and precious metals. 👀
Reference(s):
Uncertainty over next Fed chair weighs on US stocks and bonds
cgtn.com
