Prediction markets show Kevin Warsh's probability of becoming the next Federal Reserve Chair has surged, now at 39%.

Jinse Finance reported that U.S. President Trump has narrowed the race for Federal Reserve Chair down to the "two Kevins." He previously indicated a preference for either former Federal Reserve Governor Kevin Warsh or National Economic Council Director Kevin Hassett to lead the Fed next year. According to the latest data from prediction market Kalshi, the probability of Kevin Warsh being elected as the next Fed Chair has surged by 25 basis points to 39%, while Kevin Hassett's probability has dropped by 18 basis points to 54%. The probability for another candidate, Christopher Waller, is only 5%. After a recent meeting, Trump stated that Warsh is currently his top choice, but he gave high praise to both candidates. Both support lowering interest rates and believe rates should be at 1% or below. The market has now factored in the prospect of a more dovish Fed policy.