Former Federal Reserve Board member Kevin Warsh has moved to the front in the race for central bank chairman following President Donald Trump’s comments Friday, according to a closely watched prediction market.
Carsi’s traders have given Mr. Warsh a huge boost over his closest competitor, National Economic Council Director Kevin Hassett.
In remarks released Friday morning, Trump did not specify his decision but said he wanted to keep Hassett in his top economic adviser position.
“I saw you in the audience, Kevin, and I just want to thank you. It was amazing to be on TV today,” Trump said in a speech at the White House. “If you want to know the truth, I want to keep you there.”
After Trump’s speech, Carsi traders raised the odds of Warsh taking office to 59%, compared to just 14% for Hassett. Even current Fed director Christopher Waller had an 18% chance of winning the post, beating Hassett.
As of Wednesday, Warsh and Hassett were in a near dead heat.
Polymarket traders showed a similar trend, with Warsh leading Hassett 58% to 11% and Waller 16%. Traders are giving the likely finalists Rick Rieder, head of BlackRock’s fixed income division, and Michelle Bowman, a Fed board member, little chance.
President Trump has indicated he will name a successor to Powell this month, but has not set a specific date. Chairman Powell’s term ends in May.
President Trump turned to White House Chief of Staff Susie Wiles and said, “Susie, we don’t want to lose him (Mr. Hassett), but we’re going to see how everything goes.”
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