Trump Signals Fed Continuity by Keeping Kevin Hassett at White House, Offering Mild Support for Financial and Real Estate Stocks

President Trump has posted a new announcement on Truth Social, the social media platform. He wrote:

“RT @realDonaldTrump Their was great speculation that highly respected Kevin Hassett was going to be named Chairman of the Fed, and a great Chairman he would have been but, quite honestly, he is doing such an outstanding job working with me and my team at the White House, that I just didn’t want to let him go. Kevin is indescribably good so, as the expression goes, “if you can’t do better, don’t try to fix it!” Thank you Kevin for doing such a great job! President DJT”

How Will Trump’s Statement Affect the Stock Market?

This latest post has the potential to affect the stock market. That’s because Trump’s praise of Kevin Hassett and implicit decision not to change Federal Reserve leadership may reassure markets that monetary policy will remain stable, supporting large bank stocks like Bank of America, Citigroup, and JPMorgan as well as broad financial ETFs such as XLF, KRE, and VFH. Reduced perceived risk of near-term policy disruption at the Fed can bolster investor confidence in credit conditions and funding costs, which is generally positive for both financials and interest-rate‑sensitive real estate vehicles like VNQ, IYR, and XLRE in the short run. However, because the post does not signal any concrete policy shift, the impact is likely to be modest and sentiment-driven rather than a catalyst for a sustained revaluation of these sectors.

Here are some of the stocks that might be affected:
Bank of America ((BAC)),
Citigroup Inc ((C)),
JPMorgan Chase & Co. ((JPM)),
Financial Select Sector SPDR Fund ((XLF)),
SPDR S&P Regional Banking ETF ((KRE)),
Vanguard Financials ETF ((VFH)),
Vanguard Real Estate ETF ((VNQ)),
iShares U.S. Real Estate ETF ((IYR)),
Real Estate Select Sector SPDR Fund ((XLRE)).