Wall Street is making a final effort to block Trump from appointing Hassett as Federal Reserve Chair.

On December 4, according to Fox Business reporter Charles Gasparino, insiders on Wall Street and in the US business community are making a final push to warn Trump about the problems that could arise from choosing Kevin Hassett as Federal Reserve Chair. The general argument from Wall Street and the business sector is that, given the political nature of Hassett’s work (as Director of the US National Economic Council) and his past experience, he lacks credibility with Fed staff and the markets, both of which seek an independent Federal Reserve. Appointing Hassett would lead to a rise in long-term interest rates and throw the Fed into chaos. If Hassett manages to push through a split vote to lower short-term rates amid stubborn inflationary pressures (as Trump wishes), it would be seen as political interference and trigger more inflation. Mortgage and consumer rates are benchmarked to the 10-year Treasury; if rates spike due to inflation concerns, it could lead to an economic slowdown as the midterm elections approach. Of course, Trump may ignore all of this and go his own way. Other candidates in the running for Fed Chair include Kevin Warsh and Fed Governor Christopher Waller, both of whom are also considered potential picks.