Warsh is a relatively universally acceptable candidate. He has a strong personality, a good reputation in the market, and is a pragmatist. He should be relatively cooperative with Trump initially, but it's hard to say what will happen once he's established. However, as long as he can cooperate to win the midterm elections, that's fine. If Trump wins, there's no fear of him going against Trump's wishes. Hassett is far too loyal, which would lead to market scrutiny regarding the Fed's independence. Therefore, Trump has compromised to some extent and cannot act arbitrarily. Trump's decision not to impulsively choose Hassett shows that he still respects the power of the financial markets. Warsh is a respectable figure acceptable to Wall Street: a Morgan Stanley alumnus, a Stanford graduate, a former Fed governor, and his father-in-law is from the Estée Lauder family (a top-tier wealthy circle). This makes Wall Street feel that he is a "trustworthy ally" who won't cause trouble.

It seems like Powell might genuinely be clinging to his position as a board member, especially with Hassett. As for Walsh, Powell can probably rest in peace now. 🤣