CICC: If Hassett becomes Fed Chair, US Treasury yields and the dollar may first fall and then rise

According to BlockBeats, on December 8, a research report from CICC stated that, under the baseline scenario, if Hassett becomes the new Federal Reserve Chair, it may cause U.S. Treasury yields and the dollar to first fall and then rise, overall benefiting U.S. stocks. From a timeline perspective, Trump is expected to announce the new chair nomination in early 2026. For Hassett, he would first need to be nominated as a Federal Reserve governor and confirmed by the Senate, and then be nominated as chair and confirmed again. After the current chair Powell’s term ends in May 2026, Hassett would officially become chair, potentially leading the June FOMC meeting as early as then. The first quarter of next year will be a key period when the new chair nomination begins to affect market expectations. If Hassett adopts an overly dovish stance at that time, it is possible that U.S. Treasury yields and the dollar could temporarily drop more than expected. However, as long as he does not cross the line to the extent of “losing independence concerns,” the fulfillment of expectations combined with U.S. economic recovery could cause Treasury yields and the dollar to turn upward. (Jin10)