What would happen if the Fed adopted a ‘MAGA dovish’ stance?

Potential Impact of the Next Fed Chair

The influence of the Federal Reserve's future direction may hinge on who is appointed as the next Chair. Should Kevin Hassett take the role, we believe his effect would likely be limited to his individual vote. However, if an unexpected candidate such as Rick Rieder or even Scott Bessent were chosen, their presence could have a more significant influence on the committee, especially since they might bring a stronger business perspective to the table.

For a notable shift in the Fed's policy stance, the so-called MAGA doves would need to persuade at least three of the remaining eight FOMC members to create a decisive change in interest rate decisions. Although this scenario is improbable, it's worth considering what such a development could mean for monetary policy.