A covert battle is intensifying between Wall Street and Washington over the next Federal Reserve Chair.

According to the Financial Times, major players in the US bond market are getting restless—they’ve been sending private messages to the Treasury Department: if Kevin Hassett really becomes Fed Chair, things could get ugly. Why? He’s a staunch Trump supporter, and investors fear he might slash interest rates to please his boss, regardless of high inflation, turning monetary policy into a political tool.

That’s exactly what the bond market fears most. If the Fed loses its independence and policy credibility collapses, bond yields could spike out of control.

What’s even more interesting is that last November, the Treasury Department actually scheduled one-on-one meetings with Wall Street’s top institutions—big banks, asset management giants, and major players in the US Treasury market—asking them their views on Hassett and other candidates. Such a move is extremely rare in the history of Fed chair nominations, showing just how much the White House cares about the market’s reaction.

The situation is now very delicate: if Hassett really takes the helm, the bond market might “vote no” with its actions—yields could surge and volatility could increase, expressing dissatisfaction in market terms. This battle over the Fed’s independence has reached a fever pitch.