Let the market roar.
After what seems to have been an endless series of auditions, President Donald Trump looks close to nominating a successor to Federal Reserve chairman Jerome Powell. If the reports are correct that it will be Trump’s top economic adviser Kevin Hassett—who said this weekend that he’d be happy to serve—the markets have lots of reasons to cheer in the short term and, quite possibly, lots to worry about in the longer run.
Of all the prominent economists whose names have been tossed around as possible replacements for Powell when his term as chair ends in May 2026, Hassett is the one who is probably least concerned about market bubbles or investor exuberance. If you are fearful that the relentless rise of the AI stocks is a sign of an inflating bubble, then Hassett is not the man for you. Under Hassett, the AI stocks are likely to keep rising, and the market with them. But there may be trouble at the end.
