「Ultra-Dove」 Hasset is «Deprecated» by Trump, 2026 Rate Cut Expectation Significantly Reduced

BlockBeats News, January 17, according to CME FedWatch data, due to Trump's hint of nominating someone other than National Economic Council Director Hassett to replace Fed Chair Powell, traders reduced their expectations of two rate cuts in the US in 2026.

By the end of 2026, the probability of no further rate cuts for the whole year is 11.8%, the probability of a cumulative 25 basis point rate cut for the year is 30.3%, and the probability of a cumulative 50 basis point rate cut is 32.1%.

Today, when Trump mentioned White House National Economic Council Director Hassett, he said, "I want him to continue in his current position, we'll see what happens." This statement hinted that Trump may have someone else in mind for the Fed Chair position.