US NEC Director Hassett says he expects the Warsh hearing to go ahead next week; rates should be lower; confident that Warsh will start as Fed Chair on May 15

Hassett's comments suggest a transition at the Fed with Warsh potentially taking the helm, indicating market expectations for lower rates under his leadership. The expectation of a gradual balance sheet reduction is also notable, as it aligns with a more dovish outlook that could impact fixed income and equities. Overall, the implications point to a shift in monetary policy approach that may ease current financial conditions.