PGIM fund manager: Market doubts about Hassett taking over as Fed chairman

PGIM Fixed Income co-chief investment officer Gregory Peters said that even if Kevin Hassett is approved to be the next chairman of the Federal Reserve, he may not be able to cut interest rates as quickly as President Donald Trump hopes. Currently, it is widely speculated that if White House National Economic Council Director Hassett is appointed as the Fed chairman, he may significantly loosen monetary policy to please Trump. However, Peters pointed out that since the Federal Reserve interest rate decisions are ultimately made by the committee, Hassett himself does not have the authority to make policy decisions. "Does he have enough credibility within the policy committee to facilitate consensus?" Peters said. "We don't know the answer. I don't think he has that kind of credibility. I think the bond market is also confirming this."