Bloomberg Businessweek Podcast Summary

Episode: Hassett Emerges as Frontrunner in Trump Fed Chair Audition
Date: November 25, 2025
Hosts: Carol Massar & Tim Stenovec
Guests: Stuart Kaiser (Citi), Sarah Frier (Bloomberg News), Jennifer Welch (Bloomberg Economics), Jennifer Eubank (Adamant Strategic Advisors), Ryan Kelly (Hennessy Funds)

Overview

This episode explores major shifts in U.S. monetary policy, tech sector dynamics, global geopolitics, and the evolving landscape of cybersecurity. With the news that Kevin Hassett could be President Trump’s pick for the next Fed Chair, the show analyzes the potential market and policy ramifications. The discussion then moves to Big Tech—particularly Alphabet’s AI resurgence, rivalries in the AI race, the economic effects of generative AI, and how these forces are disrupting online content. Later, expert guests unpack the latest on Ukraine-Russia peace talks and their geopolitical implications, before turning to cybersecurity threats and the rapid rise of AI-powered attacks coming out of China. The episode concludes with actionable investment insights focused on midcap equities, retail trends, and AI adoption.

Key Segments & Insights

1. Fed Chair Watch: Kevin Hassett as Frontrunner

[01:56–05:01]

• Bloomberg News breaks the story: Kevin Hassett (National Economic Council) has emerged as Trump’s leading candidate for Fed Chair. The market reacted positively: yields fell, stocks rose.

• Panel Discussion:

  • Stuart Kaiser (Citi): Notes Hassett has been in the mix along with Rick Rieder and Kevin Warsh. All are seen as credible. While the President often leans toward dovish candidates, Fed independence is generally preserved.

    “I think Hassett is, from an economics perspective, on the credible side of things, without a doubt.” —Stuart Kaiser [03:02]

  • Any candidate would face a split FOMC, meaning individual sway is limited.
  • The Fed Chair’s independence and adherence to “incoming data” is emphasized, despite political preferences.

Notable Quote:

“You would hope he's going to make decisions based on...the incoming data. Clearly, a president is going to pick a chair that is consistent with their view. So it wouldn’t surprise you that maybe Trump would settle on someone that skews a touch more dovish.” —Kaiser [03:44]

2. Market Outlook & Risk Factors

[05:01–08:21]

• Market Sentiment:

  • Stuart Kaiser describes markets as "unsettled" due to:
    • Pullback from retail investors.
    • Shifting reaction to AI trends (Meta, Palantir, Oracle, Nvidia).
    • Weak retail earnings & cautious commentary (“US consumer is under pressure”).
    • Fed uncertainty.

• Forecast:

  • “If we had to pick one, we’re going to pick higher into year end.” But risk/reward is less attractive than a few months ago (seasonality + possible rate cut provide some upward momentum).
  • December 16 is highlighted as a date to watch (key payrolls data). The FOMC will have to act without all the usual data, suggesting greater volatility.

    “Our view is the unemployment rate, if you had to pick one thing, is the single most important thing for the market.” —Kaiser [06:58]

  • Weak holiday spending and a bad labor report could turn his outlook bearish.

3. Alphabet’s AI Comeback & The Battle for Search

[10:49–17:48]

• Alphabet’s Resurgence:

  • Sarah Frier: Google, once seen as slow to capitalize on its own AI innovations, is “firing on all cylinders” in 2025. Gemini LLM is outperforming rivals, Google’s TPUs are viewed as credible Nvidia alternatives, and the company is reshaping internet search with AI-driven results.

    “The company seems to be shipping products faster and doing it in a way that is high quality.” —Sarah Frier [12:40]

  • Major US firms—including Meta—are showing interest in using Google’s chips (TPUs) for their own AI.

• Search Disruption:

  • Google’s integration of AI-generated answers into search is changing user behavior, threatening websites that rely on traffic from organic search (e.g. recipe bloggers).

    “As Google directs more people to AI answers...that means traffic is diverted away from websites...the entire Internet could crumble in a way.” —Frier [17:48]

  • There are risks of AI “Frankenstein recipes” and unreliable information if web creators can no longer monetize their expertise.

Memorable Moment:

• Frier discusses how inaccuracies occur:

  “Google mixed up one of [a blogger’s] cake recipes and told people to cook this six inch cake for three to four hours. You’d get charcoal!” [20:02]

4. Ukraine Peace Negotiations—Who’s in Control?

[25:32–32:03]

• Jennifer Welch (Bloomberg Economics):

  • The U.S.-Russia-Ukraine peace plan seemed to favor Moscow, capping Ukraine’s military and denying NATO accession in exchange for vague guarantees.
  • Intense back-and-forth negotiations adjusted nine of 28 terms, but there’s skepticism that Russia will accept.

    “Our assessment is that Russia is unlikely to receive in a positive way those altered terms based on...prior rounds of negotiations.” —Welch [26:54]

• Geopolitical Complexity:

  • Confusion over who is driving the negotiations—US, Ukraine, EU, or Russia.
  • Europe wants to prevent a peace that would let Moscow regroup; fears persist of Putin repeating a Crimea-style land grab after peace is achieved.

• On Potential Outcomes:

  • Russia is betting on time and battlefield gains. Only harsher sanctions could push Moscow’s calculus toward the negotiating table.

• China-US Truce:

  • The Trump administration prioritizes stability for now but risks abound (e.g. export controls, Congressional actions).

    “At the moment, Washington seems very focused on maintaining it and keeping it in place.” —Welch [32:03]

5. AI, Cyber Threats and National Security

[32:18–37:19]

• Guest: Jennifer Eubank (Adamant Strategic Advisors, former CIA)

  • While Russia is active, China is the main threat in cyberspace, having deployed the first end-to-end AI-powered cyber campaign (90% automated attacks).

    “It’s really all about China right now...in terms of sophistication, scale, and ambition.” —Eubank [33:22]

  • The confluence of AI and cyber marks a “major shift”—defenses must increasingly become machine-driven.

• AI as Double-Edged Sword:

  • The Genesis Mission executive order aims to accelerate American AI innovation, but also dramatically raises security stakes as sensitive data pools grow.

    “Like any new technology, it’s both shield and sword.” —Eubank [35:35]

• Practical Security Advice:

  • The most effective personal defense: "Put multifactor authentication on any account that will allow it and that will stop virtually all nefarious activity..." —Eubank [37:05]

6. Drive to the Close: Investment Themes, Retail & AI

[40:22–48:56]

• Markets Recap:

  • Stocks were broadly higher, health care and consumer sectors outperformed, and small caps posted a significant gain (Russell 2000 up over 2%).

• Guest: Ryan Kelly (Hennessy Funds):

  • Fed Chair Reaction: Markets like names viewed as likely to push rates lower faster, but the next Chair will remain largely data dependent.

    "I would suspect data is still going to be very important." —Ryan Kelly [43:43]

  • Midcap Investing:

    • Challenging as small caps rebound, but midcaps offer attractive valuations and acquisition appeal.
    • Hennessy’s Mid Cap 30 fund boasts strong 5-year average returns (19%) despite a tough YTD.
    • Success achieved without the “Mag 7” large-cap tech stocks.

  • Retail Focus:

    • Macy’s is a recent addition, benefitting from holiday optimism.
    • Wayfair’s stock is up ~150% YTD, seen as an AI beneficiary in e-commerce.

      “They’re potentially going to be one of the early adopters that really benefit from AI...to reduce costs for themselves.” —Kelly [47:44]

Standout Quotes & Timestamps

• On potential new Fed Chair’s independence:

  “Supreme Court justices, Fed chairs... these people are generally pretty reputable that respect the value and the independence of the organization.” —Stuart Kaiser [03:44]

• On AI’s impact on web content creators:

  “You might end up in a future where AI is just building its answers off of [other] content created by AI...the information may not be as valuable or accurate.” —Sarah Frier [18:40]

• On China's automated cyberattacks:

  “The agents would simply come back occasionally and ask the operator, 'Is this what you want or would you like to do this instead?'...That came out of China and state-sponsored actors.” —Jennifer Eubank [33:45]

• On risk management for federal innovations:

  “...this is going to be a tremendously attractive target for adversaries.” —Eubank [35:35]

Timestamps for Important Segments

• Fed Chair Hassett news & market reaction: [01:56–05:01]
• Market outlook, risks & data watch: [05:01–08:21]
• Alphabet AI, Google/TPU, and disruption to search: [10:49–22:32]
• Ukraine peace process and global alliances: [25:32–32:03]
• Cybersecurity threats and AI defense: [32:18–37:19]
• Investment perspectives, retail & midcaps: [40:22–48:56]

Conclusion

This episode delivers an in-depth look at several of 2025’s most pressing business, tech, and geopolitical issues—exploring how central bank appointments ripple through markets, what Alphabet’s AI renaissance means for the future of the web, how peace negotiations in Ukraine are shaped by an ever-shifting balance of power, and the escalating, AI-powered cyber arms race with China. Listeners come away with a sharper understanding of evolving risks and opportunities across markets, technology, and global affairs—plus a few practical takeaways on protecting both investments and personal data.