US Treasury Secretary Bessent: Expect new Fed chair in early January

U.S. Treasury Secretary Scott Bessent indicated that a new Fed chairman announcement is expected in early January. This selection is pivotal, especially since a significant drop in inflation is anticipated in the first half of 2026, which could influence monetary policy. Bessent highlighted that both Warsh and Hassett are 'very qualified', with Warsh recently becoming the favorite due to reports of pushback against Hassett from close Trump associates. The selection of the Fed chair is likely to have implications for market investors. As monetary policy is decided by majority vote, the incoming chair's views on economic conditions will reflect in market movements. Comments regarding the Fed's economic stance will be monitored closely, potentially leading to new trading opportunities focusing on inflation expectations and economic reports. Additionally, positive U.S.-China relations could be a significant factor in assessing economic impacts. It is crucial to keep an eye on future developments as market expectations could shift with each announcement.