When US President Donald Trump publicly refers to someone as a “potential Fed chair,” markets pay attention. They did so again this week when Trump, speaking at the White House, appeared to signal that Kevin Hassett has emerged as his preferred choice to lead the Federal Reserve.

The response was immediate. Prediction markets swiftly repriced the race, and notably, financial markets stayed calm.

That reaction matters. At a time when confidence in central banking carries heavy weight, investors are not treating this signal as destabilising. Instead, they are reading it as a sign that continuity and familiarity may prevail over disruption.

Trump’s comments carry added significance because they followed remarks earlier in the day suggesting the selection process is effectively complete.

He reportedly told cabinet colleagues that a field of roughly ten candidates has been reduced to one. In that context, referring to Hassett as a “potential Fed chair” reads less like an aside and more like an intentional clue. Markets interpreted it that way and adjusted accordingly.

The reason investors respond without alarm is simple. Hassett is a known quantity. His work in economic research, his experience advising administrations, and his deep familiarity with policy trade-offs mean markets feel able to anticipate his decisions.

Central banking credibility is built on expectation management, and figures whose thinking is already mapped reduce uncertainty.

Markets rarely agree unanimously with central bankers. What they demand is coherence. Hassett has operated within the policy mainstream for decades. His intellectual framework is neither experimental nor ideological.

The predictability lowers risk premiums across assets, steadies valuation frameworks and supports capital allocation decisions in an already fragile global environment.

Another source of reassurance is Hassett’s approach to growth and inflation. He is widely seen as supportive of economic expansion and business investment, while recognising the constraints imposed by price stability.

This balance will matter as the US economy continues to cool. Labour demand has softened, consumption momentum has eased and inflation risks have shifted materially. The next phase of monetary policy will demand judgement rather than blunt force.

Hassett’s record suggests an ability to read those conditions without overreaction. Investors do not expect sharp policy swings or impulsive communication. The expectation supports equities, anchors bond markets and reduces the probability of policy-driven volatility.

Concerns around independence are unavoidable whenever a president signals preference for a central bank appointment.

Here, markets appear to draw a distinction between political association and institutional behaviour. Despite his past roles within Trump’s orbit, Hassett is not perceived as a figure inclined toward overt political pressure on monetary policy. The perception is critical as credibility, once questioned, becomes expensive to restore.

Calm market pricing reflects comfort, not celebration. Investors are not greeting the signal with enthusiasm, but with acceptance. In central banking, that response is often the most valuable endorsement available. It suggests expectations remain anchored and trust remains intact.

A Hassett-led Fed would take charge at a moment of global sensitivity. US monetary policy continues to shape financial conditions far beyond US borders. Credible leadership reduces spillover risk, supports global capital flows and helps stabilise expectations at a time when global growth remains uneven and vulnerabilities persist.

Markets aren't seeking a hero. They are seeking stewardship. Someone inclined toward discipline, clarity and careful adjustment rather than experimentation. For now, the reaction to Trump’s remarks suggests investors believe Kevin Hassett fits that profile.

This belief does not guarantee success. It does, however, provide a constructive starting point. In central banking, stability begins with trust. In the market’s early assessment, Hassett offers more of that than many alternatives

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London-born Nigel Green is founder and CEO of deVere Group. Following in his father’s footsteps, he entered the financial services industry as a young adult. After working in the sector for 15 years in London, he subsequently spent several years operating within the international space, before launching deVere in 2002 with a single office in Hong Kong. Today, deVere is one of the world’s largest independent financial advisory organizations, doing business in 100 countries and with more than $12bn under advisement. It specializes global financial solutions to international, local mass affluent, and high-net-worth clients. In early 2017, it was announced that deVere would launch its own private bank. In addition, deVere also confirmed it has received its own investment banking license.