Bond market's throwing up red flags over Kevin Hassett potentially taking the Fed chair. Word is investors are genuinely spooked he'd slash rates way too fast just to keep Trump happy.

The concern isn't subtle—treasury holders are literally warning officials about this scenario. They're worried Hassett's loyalty to Trump could override sound monetary policy judgment. If the Fed starts cutting aggressively without proper economic justification, it could trigger some serious market volatility.

This matters beyond traditional finance. Aggressive rate cuts typically weaken the dollar and push investors toward alternative assets. We've seen this playbook before—when central banks go loose, risk assets tend to catch a bid. But if it's politically motivated rather than data-driven? That's a different animal entirely.

The bond market usually prices in these risks early. If treasury investors are already nervous, that signal shouldn't be ignored.