Kevin Hassett Emerges As Frontrunner For Fed Chair

Political

Economic

Summary:

Kevin Hassett, who served as Donald Trump's top economic adviser, is now the leading contender to become the next Chair of the U.S. Federal Reserve. Known for his vocal support of sharp interest rate cuts, Hassett's potential appointment could signal a major shift in the central bank's approach to monetary policy.

· Kevin Hassett is the leading candidate for Fed Chair.

· He strongly supports significant interest rate cuts.

· Trump's influence over the Fed may grow with this appointment.

As the 2024 presidential election looms, this move could reflect Trump's intent to reshape the Fed with allies who support his pro-growth, low-rate economic philosophy. Hassett has been consistent in advocating for lower rates to boost economic activity, even at the risk of inflation.

What This Means for Monetary Policy

If appointed, Kevin Hassett could steer the Federal Reserve toward an aggressive rate-cutting strategy. This approach contrasts with the current Fed policy, which has focused on keeping inflation in check through higher interest rates.

Markets may interpret his leadership as a pivot toward looser monetary policy, especially if economic conditions weaken or political pressure mounts. This shift could have far-reaching effects on everything from the U.S. dollar to global crypto markets, as lower rates often stimulate risk-on investment behavior.

Political Implications and Market Reactions

Trump's increasing influence over the Fed could reignite debates about central bank independence. Critics argue that politically motivated rate cuts could undermine long-term financial stability. On the other hand, supporters believe such measures are necessary to sustain economic momentum.

If Kevin Hassett is officially nominated and confirmed, markets may brace for a more dovish Fed stance. This development could energize both stock and crypto markets, which typically benefit from low-interest environments.

Source: CryptoSlate

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Gerik

Economic

Commodity

New Purchases Reflect Policy Shift After Trade Truce

China has recently resumed large-scale purchases of U.S. soybeans, securing at least 10 to 15 cargoes for January shipment from Gulf Coast and Pacific Northwest ports. This buying spree comes directly after a reported breakthrough in trade negotiations between the U.S. and China. According to traders familiar with the deals, contracts were signed beginning Tuesday, reflecting a sudden reactivation of Chinese demand for American soy amid improving bilateral relations.

This development follows U.S. Treasury Secretary Scott Bessent’s October 30 announcement that China had agreed to a strategic soybean purchasing commitment. The deal includes an immediate purchase of 12 million metric tons for the current season and an annual commitment of 25 million tons through 2028. This announcement was part of a broader reconciliation framework discussed during a summit between President Donald Trump and President Xi Jinping in South Korea.

Chicago Futures React Sharply as Prices Reach New Highs

Soybean futures on the Chicago Board of Trade responded swiftly to the news. The most active contract rose 1.4% to $10.09-1/2 per bushel in overnight trading, after initially dipping. It later peaked at $11.14-1/2 its highest level since July 2024 surpassing this week’s previous 15-month high. This price movement reveals a direct causal relationship between geopolitical announcements and commodity markets, especially when the asset is highly exposed to export dynamics, as with U.S. soybeans.

CM Navigator analyst Donatas Jankauskas noted that if the outlined commitments are fulfilled, Chinese demand could return to the 2023/24 levels by 2026/27. This statement emphasizes that the deal is not merely a short-term political gesture but could mark the beginning of a multi-year demand restoration for American soybean producers.

This change in Chinese procurement behavior reverses months of reduced engagement with U.S. agricultural exports. Previously, amid a tense trade standoff, China had significantly curtailed its reliance on U.S. supply, instead turning to Brazilian and Argentine sources. The recent pivot suggests a strategic recalibration that prioritizes diversified sourcing while leveraging geopolitical alignments.

Iowa Farmers Stand to Benefit as Prices and Exports Rebound

For U.S. agricultural states particularly Iowa and Illinois, the two largest soybean-producing regions the announcement provides a timely boost. Iowa Agriculture Secretary Mike Naig stated that expanded purchases by China would have a “meaningful impact” for farmers currently navigating a challenging economic environment. The sentiment was echoed by Tom Adam, president of the Iowa Soybean Association, who highlighted that the agreement helps address long-standing concerns about market access and purchasing volatility.

This policy-driven demand shift offers not only immediate pricing support but also long-term stability to U.S. growers. Farmers in the Midwest, who had suffered from years of trade disruptions, may now re-engage in forward contracting and investment planning with greater confidence.

Outlook Hinges on Policy Follow-Through and Logistics Execution

While the commitment figures are substantial, their impact will depend on consistent implementation and logistical delivery. COFCO’s recent purchase of three soybean cargoes ahead of the Trump-Xi summit already hints at an operational shift in Chinese import planning. Still, the durability of these agreements depends on political stability and ongoing negotiations over broader trade terms.

The relationship between political diplomacy and commodity markets remains evident. Price movements, trading volumes, and farmer sentiment are highly responsive to official statements and policy shifts. As such, markets will likely continue to monitor follow-up purchases and export data to validate whether these commitments translate into sustainable trade flows.

China’s purchase of at least 10 new soybean cargoes, framed within a wider long-term purchasing agreement, reflects not just a diplomatic breakthrough but also a potential structural reset in U.S.-China agricultural trade. With futures surging and Midwest farmers regaining export access, the economic consequences of this trade truce are already unfolding in both market behavior and producer optimism. However, full realization of these benefits will depend on continued adherence to the agreement and on-the-ground execution of the trade volumes promised.

Source: Reuters

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Gerik

Economic

Stocks

Investor Optimism Grows as New Fed Chair Speculation Mounts

Equity markets across the Asia-Pacific region surged on Wednesday, closely tracking gains on Wall Street. The optimism was largely driven by rising market expectations that the U.S. Federal Reserve will implement a rate cut in December. This momentum intensified following reports that Kevin Hassett, a known supporter of accommodative monetary policy and current White House National Economic Council Director, is the leading contender to replace the Fed Chair. Investors perceive Hassett’s potential appointment as aligning with President Donald Trump's preference for lower interest rates, reinforcing the probability of imminent policy easing.

U.S. Treasury Secretary Scott Bessent reinforced this narrative by indicating that the administration may announce the new Fed Chair before Christmas. At the same time, dovish remarks from New York Fed President John Williams, who mentioned that there is room to reduce interest rates “in the near term,” further solidified investor conviction. As a result, the CME FedWatch tool now reflects an 84% likelihood of a December rate cut, significantly influencing both U.S. and global investor sentiment.

Japanese Equities Rise as Tech Leads Recovery

Japan’s Nikkei 225 rose 1.94%, and the broader Topix index increased 0.9%. Technology stocks led the rally for a second day, reflecting heightened investor appetite for growth sectors amid declining bond yield expectations. Shares in semiconductor testing firm Advantest climbed 2.5%, while Tokyo Electron gained 0.61%. Lasertec and Renesas Electronics added more than 2% and 1%, respectively. Notably, SoftBank Group surged 5.9%, benefiting from its tech-focused portfolio.

However, Kioxia shares dropped over 12% after reports that Bain Capital would sell ¥350 billion (approximately $2.24 billion) worth of shares, reducing its ownership from 51% to 44%. This sudden strategic divestment signals a potential shift in investor confidence, possibly linked to recent earnings underperformance, as Kioxia's fiscal Q2 results had already disappointed the market, triggering a 23% decline post-announcement.

Broader Regional Gains Supported by Global Sentiment

South Korea’s Kospi rose by 0.67%, and the Kosdaq index advanced 0.64%, reflecting broad-based gains among Asia’s technology and industrial shares. Meanwhile, Australia’s S&P/ASX 200 rose 1.2% at open and closed up 0.83%, despite fresh inflation data showing a 3.8% annual rise in October, its fastest since April. Although the inflation surge might typically restrain equity sentiment, the global rate-cut narrative has, for now, overshadowed domestic price concerns.

In Greater China, Hong Kong’s Hang Seng Index gained 0.59% while the mainland CSI 300 rose 0.95%, with improved risk appetite spilling over from the U.S. market. Taiwan’s Taiex rose 1.4%, led by Foxconn’s 2% gain. The company received a green light for a revised tax incentive deal worth $16 million to support an additional $569 million investment in its Wisconsin operations, suggesting ongoing global supply chain expansion.

Wall Street Performance Reinforces Upbeat Mood

Wall Street’s sharp rebound on Tuesday provided the backdrop for Asia’s performance. The Dow Jones Industrial Average surged 664.18 points or 1.43% to close at 47,112.45. The S&P 500 and Nasdaq Composite added 0.91% and 0.67%, respectively. This recovery was especially significant given that all three indexes were in negative territory earlier in the session highlighting how sensitive current markets are to rate policy shifts.

The surge across Asia is deeply tied to U.S. monetary policy expectations, underlining a causal relationship between anticipated rate changes and investor risk appetite. While markets have priced in near-term rate relief, future sentiment hinges on whether the leadership transition at the Federal Reserve materializes and whether economic indicators continue to justify easing. Until then, global equity performance, especially in rate-sensitive sectors such as technology, will remain closely correlated with Fed communication and macroeconomic trends.

Source: CNBC

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Justin

Forex

Economic

China bought at least 10 cargoes of U.S. soybeans worth around $300 million in contracts signed since Tuesday, two traders with knowledge of the deals said, a day after the presidents of both countries spoke on the phone.

The purchases of the unusually large volumes extend a surge in Chinese buying after the recent thaw in U.S.-China trade relations. U.S. President Donald Trump touted relations with China as "extremely strong" after a phone call with his Chinese counterpart Xi Jinping on Monday.

Trump said he had pressed Xi to accelerate and increase Beijing's purchases of U.S. goods during the call, and that the Chinese leader had "more or less agreed".

One trader said China bought about 12 cargoes, while another estimated the volume at 10–15. Each cargo is about 60,000 to 65,000 metric tons.

All the cargoes are scheduled for January shipment from U.S. Gulf Coast terminals and Pacific Northwest ports, the sources said on Wednesday.

The purchases come despite U.S. soybeans being priced higher than Brazilian supplies.

China, which had largely shunned U.S. soybeans for months amid a tense Washington–Beijing trade standoff, has stepped up purchases recently following late-October talks between the two countries' leaders in South Korea.

State-run grain buyer COFCO has led the buying, booking nearly 2 million tons of U.S. soybeans since late October, according to U.S. Department of Agriculture data.

The recent deals still remain well below the 12 million tons of purchases announced by the White House.

However, U.S. Treasury Secretary Scott Bessent said on Tuesday Chinese purchases of American soybeans are "right on schedule," citing an agreement for Beijing to buy 87.5 million tons of the U.S. product over the next three and a half years.

Source: Investing

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Gerik

Economic

Acceleration of Price Growth Surpasses Expectations

In October, Australia recorded a sharp acceleration in consumer inflation, with the Consumer Price Index (CPI) increasing 3.8% year-on-year. This pace is the quickest since April 2025 and notably higher than the 3.6% rise predicted by economists in a Reuters survey. The latest figures, released by the Australian Bureau of Statistics (ABS), mark the first full release of monthly inflation data since the country transitioned from quarterly to monthly CPI reporting. This change enhances data granularity and provides more timely insight into price movements across all expenditure classes.

A significant contributor to the October inflation uptick was the housing sector, where prices surged by 5.9%. This trend was largely influenced by a 37.1% spike in electricity costs following the expiration of government subsidies, alongside rising rents and costs for newly built homes. The rise in housing-related prices appears closely linked to structural issues in supply, as highlighted by AMP’s chief economist Shane Oliver, who pointed to historically low housing affordability caused by a severe undersupply.

Consumer Price Trends Beyond Housing

Other sectors also contributed to price increases. Food and non-alcoholic beverages, as well as recreation and culture, each experienced a 3.2% rise compared to the previous year. Meanwhile, the trimmed mean inflation which excludes volatile items inched up to 3.3% in October from 3.2% in September. These consistent increases across multiple categories underscore the broad-based nature of inflationary pressures.

Despite the year-on-year acceleration, the month-on-month headline CPI remained unchanged compared to September, defying forecasts of a 0.2% decline. This indicates a temporary stabilization in prices, though not enough to suggest a broader disinflationary trend.

RBA Maintains Interest Rates as Inflation Persists

The Reserve Bank of Australia (RBA) kept the cash rate steady at 3.6% earlier this month, citing caution amid persistent inflation and stronger-than-anticipated consumer demand. RBA Governor Michele Bullock acknowledged that the interest rate cutting cycle might soon conclude, stating that while the central bank did not raise rates aggressively, it may not need to reduce them significantly either. Importantly, the RBA projects inflation to remain above its 2–3% target range until the second half of 2026.

Improving business conditions and solid GDP growth provide the central bank with flexibility to hold rates steady. A National Australia Bank survey in October revealed the strongest business conditions since March 2024, with firms reporting improved sales and profit margins. Furthermore, the economy grew by 1.8% in Q2, up from 1.3% in the previous quarter, driven primarily by household and government consumption. These economic underpinnings support the RBA’s stance of waiting before considering any easing.

Market Reactions to Inflation Surprise

Following the inflation report, the S&P/ASX 200 rose by 0.73%, reflecting investor confidence in the resilience of the economy. Meanwhile, the Australian dollar slipped by 0.36% to 0.6491 against the US dollar, and 10-year government bond yields rose 4 basis points to 4.474%, suggesting rising expectations for prolonged tight monetary policy.

The stronger-than-expected inflation figures reinforce the RBA’s narrative of persistent price pressures. While not indicating immediate policy tightening, the current data may push any discussions around interest rate cuts further into the future, likely toward mid-to-late 2026. The inflationary trend, particularly in housing and utilities, appears to be more than just seasonal or short-lived. The linkage between structural supply constraints and rising prices highlights the causal relationship that policy makers must consider when designing interventions. Without significant supply-side reforms in the housing market, inflation could remain sticky even if broader demand pressures ease.

Source: CNBC

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Samantha Luan

Political

During the trial the court was told that Lee gave the children an overdose of prescription medicine, before wrapping their bodies in plastic bags and putting them in suitcases

A New Zealand woman who killed her two young children and hid their bodies in suitcases was sentenced on Wednesday to life imprisonment.

South Korean-born New Zealand citizen Hakyung Lee, 45, was convicted earlier this year of murdering her children, aged eight and six in 2018, a year after their father died of cancer.

Mother hid children's bodies in suitcases

During the trial, the court was told that Lee gave the children an overdose of prescription medicine, before wrapping their bodies in plastic bags and putting them in suitcases.

The bodies were discovered in 2022 by a family who had bought the contents of an abandoned storage unit at auction.

By then, Lee had changed her name and fled to South Korea but was extradited to face trial in New Zealand in late 2022.

At her sentencing in Auckland on Wednesday, Lee's life imprisonment sentence came with a minimum non-parole period of 17 years. She showed little reaction as the sentence was handed down.

Judge rules Lee aware her actions were 'morally wrong'

Following her confession to the murders, the trial hinged on whether she knew her actions were morally wrong.

She argued she was not guilty by reason of insanity.

However, the prosecution contested that saying that she knew what she was doing, pointing to her efforts to hide the bodies before fleeing the country.

Justice Geoffrey Venning rejected calls for a lesser sentence, ruling that although Lee suffered from depression following the death of her husband, she knew her actions were "morally wrong."

"Perhaps you could not bear to have your children around you as a constant reminder of your previous happy life," Venning said.

He ordered that she begin her term in a secure psychiatric facility before returning to prison once deemed mentally fit.

Source: DW

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FastBull Featured

Daily News

[Quick Facts]

1. Trump: Russia-Ukraine is very close to a deal.

2. White House: Issues still remain in the Peace Agreement that need resolution.

3. In Fed Chair selection, White House NEC director Hassett is seen as a frontrunner.

4. Australia's inflation pressure persists; Capital Economics sees little chance of rate cuts.

5. RBNZ cuts rates by 25 basis points to 2.25%, continues easing to support economy.

6. Bessent says the Fed should step back; Simplifying the central bank is a key theme in Chair selection.

[News Details]

Trump: Russia-Ukraine is very close to a deal

"I think we're getting very close to a deal," President Donald Trump said on November 25th, though European leaders expressed skepticism. White House Press Secretary Levitt said on the 25th that there are still some delicate details in the U.S.-proposed peace plan to end the Ukraine crisis that need to be resolved, but these issues are not insurmountable. Further consultations among Ukraine, Russia, and the United States will be required. Earlier that day, a U.S. official said Ukraine had agreed in principle to the American-proposed peace plan, but some terms still require discussion. Ukrainian National Security and Defense Council Secretary Umerov said the same day that Ukrainian and U.S. delegations had reached consensus on the core provisions of the peace plan discussed recently in Geneva.

White House: Issues still remain in the Peace Agreement that need resolution

According to CCTV News, White House Press Secretary Levitt stated on the 25th that "there are a few delicate but not insurmountable details that need to be resolved, which will require further negotiations between Ukraine, Russia, and the United States." CNN and other media reported that a U.S. official said Ukraine had agreed in principle to the American-proposed peace plan, though some clauses still need discussion. The same day, Ukrainian National Security and Defense Council Secretary Umerov said the two countries' delegations had reached a consensus on the core terms discussed in Geneva.

In Fed Chair selection, White House NEC director Hassett is seen as a frontrunner

According to reliable sources, as the search for the next Federal Reserve Chair enters its final weeks, White House National Economic Council Director Kevin Hassett is viewed by President Trump's advisors and allies as the leading candidate. Speaking anonymously, sources noted that if Hassett is chosen, Trump would be able to place a trusted confidant in charge of the independent central bank. Some sources added that Hassett is seen as someone who could bring the president's rate-cut philosophy into the Fed—something Trump has long sought to influence. However, sources also pointed out that Trump is known for making unexpected personnel and policy decisions, so no nomination can be considered final until publicly announced.

Australia's inflation pressure persists; Capital Economics sees little chance of rate cuts

Latest data show Australia's inflationary pressures persist, dampening market expectations for a rate cut by the Reserve Bank of Australia (RBA). Capital Economics noted that October's consumer price index was flat, contrary to market expectations of a mild decline, while core inflation indicators showed a broad rebound.

In an analysis report, Capital Economics senior economist Abhijit Surya wrote that month-on-month data show virtually no sign of easing inflationary pressure, which is a major red flag. The CPI report almost guarantees that the RBA will keep interest rates unchanged in the near term.

Surya added that Capital Economics' previous forecast of a return to rate cuts in the second half of 2026 faces increasing risk. He emphasized that if next week's national accounts data also show rising capacity constraints, the current easing cycle may already be over. This suggests Australia could face a prolonged period of high interest rates.

RBNZ cuts rates by 25 basis points to 2.25%, continues easing to support economy

The Reserve Bank of New Zealand (RBNZ) announced on Wednesday it would lower its Official Cash Rate by 25 basis points from 2.5% to 2.25%, reaching its lowest level since mid-2022. The move was in line with broad market expectations—32 of 36 surveyed analysts had predicted this cut.

This reduction is part of the RBNZ's efforts to revive the economy and counter global headwinds. Since launching its easing cycle in August 2024, the bank has cut rates by a cumulative 325 basis points. Notably, the RBNZ unexpectedly cut by 50 basis points last October, exceeding market forecasts.

New Zealand's economy has contracted in three of the past five quarters, and continued policy easing aims to support the struggling economy. The latest cut extends the RBNZ's use of monetary policy to address economic challenges.

Bessent says the Fed should step back; Simplifying the central bank is a key theme in Chair selection

U.S. Treasury Secretary Scott Bessent said the core theme in selecting the next Fed Chair is "simplifying things," which is also a major topic in his interviews with candidates. He noted that the Fed's management of money markets has become overly complex. On Tuesday in a CNBC interview, Bessent said one criterion he focuses on is the interaction between the Fed's various policy tools. "We've gotten to this point where monetary policy has gotten very complicated."

He revealed that he would hold the second and final round of interviews that day with five potential candidates to succeed Jerome Powell as Fed Chair, and reiterated that Trump may announce his nominee before December 25th. Previously, the administration disclosed that the final candidates include Fed Governors Christopher Waller and Michelle Bowman, former Governor Kevin Warsh, NEC Director Kevin Hassett, and BlackRock executive Rick Rieder.