PGIM Fixed Income Co-Chief Investment Officer Gregory Peters said that even if Kevin Hassett is approved as the next chairman of the Federal Reserve, he may not be able to cut interest rates as fast as US President Donald Trump wants. Currently, outsiders generally speculate that if Hassett, director of the White House National Economic Council, is appointed as the chairman of the Federal Reserve, he may drastically relax monetary policy in order to please Trump. However, Peters pointed out that since the Fed's interest rate decision is ultimately made by the committee, Hassett himself has no right to make policy decisions himself. “Does he have enough authority within the policy committee to forge consensus?” Peters said, “We don't know the answer. I don't think he has that kind of prestige. I think the bond market is also confirming this.”

PGIM Fixed Income Co-Chief Investment Officer Gregory Peters said that even if Kevin Hassett is approved as the next chairman of the Federal Reserve, he may not be able to cut interest rates as fast as US President Donald Trump wants. Currently, outsiders generally speculate that if Hassett, director of the White House National Economic Council, is appointed as the chairman of the Federal Reserve, he may drastically relax monetary policy in order to please Trump. However, Peters pointed out that since the Fed's interest rate decision is ultimately made by the committee, Hassett himself has no right to make policy decisions himself. “Does he have enough authority within the policy committee to forge consensus?” Peters said, “We don't know the answer. I don't think he has that kind of prestige. I think the bond market is also confirming this.”