Treasury yields climb as Trump weighs keeping Hassett at White House instead of naming him Fed chair

On January 16, 2026, President Donald Trump said he is reconsidering Kevin Hassett as his choice for Federal Reserve chair because he does not want to lose him from his White House economic post. After Trump's remarks, the two-year Treasury yield rose to 3.61%, while markets reduced expectations for multiple Fed rate cuts in 2026. Hassett also publicly downplayed the criminal probe into Jerome Powell over $2.5 billion in renovation cost overruns at the Fed.