Hassett Leads in Trump Fed Chair Selection Process
Kevin Hassett, the current Director of the White House National Economic Council, is emerging as a leading candidate to become the next Federal Reserve Chair. This information comes from sources close to President Donald Trump as the search for a new central bank leader intensifies.
Hassett: A Trusted Ally for Trump
Hassett is viewed as a close ally of Trump, making him a favored choice for the position. His alignment with Trump’s economic views includes a strong inclination towards cutting interest rates. Observers believe that with Hassett at the Fed, Trump could exert greater influence over monetary policy.
Despite his frontrunner status, Trump has a history of surprising decisions regarding personnel. White House Press Secretary Karoline Leavitt commented that, “nobody actually knows what President Trump will do until he does it.”
Hassett’s Perspective on Interest Rates
In a recent interview, Hassett stated that he would be in favor of cutting interest rates immediately if appointed Chair. He criticized the Fed for its management of inflation during the pandemic, expressing the need for immediate action based on economic data.
Current Fed Landscape
Recent actions by the Federal Reserve have included interest rate cuts in September and October of this year. However, the Fed’s officials show division regarding future rate cuts due to varying outlooks on inflation and the labor market.
- Fed Rate Cuts: 25 basis points in September and October
- Next Meeting: December, potential for more cuts
The Selection Process
Treasury Secretary Scott Bessent is managing the candidate selection process and has interviewed several contenders. The list includes Hassett, former Fed official Kevin Warsh, and current central bank governor Christopher Waller, among others.
The final candidate will also need Senate confirmation. As the process nears conclusion, Bessent noted that interviews would wrap up soon, and a smaller group of finalists would meet with key administration officials.
Trump’s Frustration with Powell
Trump’s frustration with current Chair Jerome Powell is palpable, as he recently labeled Powell “grossly incompetent.” This dissatisfaction with Powell’s performance could drive Trump to make a decisive choice soon.
On November 18, Trump hinted at knowing his selection, creating anticipation around his decision.
The Future of the Federal Reserve
Hassett’s nomination would open a 14-year term starting on February 1, 2026. Currently, Powell’s term as Chair will end in May 2026, leaving various potential vacancies in the near future.
The implications of this decision may significantly influence U.S. economic policy and the Fed’s direction under a new Chair. Observers anticipate a decision from Trump may arrive before the Christmas holiday, urging stakeholders to remain vigilant.
