Fed Chair's "Three Kingdoms" battle escalates: Hassett's confidant vs. Walsh, Wall Street darling, Waller emerges as a dark horse, who will dominate?

The battle for the Fed chair has spread to Washington and Wall Street! The Wall Street Journal's “New Fed News Agency” reports: Wall Street figures and Trump allies are quietly lobbying to push their respective candidates.

The focus is on the two Kevins: Hassett (a Trump confidant) and Walsh (Wall Street approved). Walsh has clear ambitions, but his sincerity is in doubt. Dark horse Waller (current board member) is gaining high support, with 81% of corporate executives backing him. Trump is privately not entirely satisfied with Walsh; balancing independence and loyalty is key. Hassett has a significant chance of winning, and the White House may use sleight of hand to digest negative public opinion.

In-depth Comparison of Candidates' Advantages and Disadvantages

Core Characteristics of the Three Candidates

Hassett's close associates stand out, but the market is concerned about their independence; Waller is a Wall Street darling, yet he is heavily skeptical; Waller has great dark horse potential, balancing independence with policy cooperation.

Support camp and public opinion dynamics

The article states that the interview with Walsh left a deep impression on Trump, but he is privately dissatisfied; Hassett has a good chance, and the White House may use sleight of hand to make the market accept it.

Wall Street Journal Perspective: The Ultimate Balance Between Independence and Loyalty

Nick's article emphasizes that the next chairman needs to balance the Fed's independence with the alignment of Trump's policies. Hassett is the most obedient, but the market doesn't trust him; Waller is independent and rigorous, but has a distant relationship; and Walsh has ample experience, yet his ambitions are blatant. Trump cannot bear the risk of “superficial alignment and gradual distancing,” so his trusted ally Hassett has a significant advantage. The White House may use public opinion to mitigate negativity, ultimately selecting someone based on alignment.

Impact in 2026: The Chairman's Candidate Determines the Success or Failure of Easing

If Hassert takes office, low interest rate easing may accelerate, but the risk of weakened independence is significant; Waller/Wash is more market-friendly, with a tight logic for rate cuts. No matter who wins, the chairmanship battle has become the focus of Washington/Wall Street - a game of human nature and power that will determine the future direction of the Fed. One step at a time, the easing expectations for 2026 hinge on this battle!