Hassett Agrees with Trump’s Decision to Overlook Him for Fed Chair

White House economic adviser Kevin Hassett has expressed his understanding of President Donald Trump’s decision to keep him in his current role. This situation likely removes him from the running for the next Federal Reserve chair position.

Hassett Discusses Future Role

In a recent interview on Fox News, Hassett indicated, “From the beginning, he and I have talked about whether it’s better for me to be here in the West Wing or over at the Fed.” He added that the President has not yet made a definitive choice regarding his future.

Current Fed Chair Transition

Trump has shown hesitance about nominating Hassett to succeed Jerome Powell, the current Fed chair. During a recent White House event, he stated, “I actually want to keep you where you are, if you want to know the truth.”

Potential Candidates for Fed Chair

Hassett had been regarded as a leading contender for the Fed post, alongside Christopher Waller, Kevin Warsh, and Rick Rieder of BlackRock Inc. However, the race has narrowed to four candidates, with Rieder gaining traction among those close to the process. Observers suggest that he may be more likely to secure Senate confirmation.

Challenges Facing the Next Fed Chair

• Jerome Powell’s term ends on May 15.
• A criminal investigation into the Fed and Powell regarding the bank’s headquarters remodeling has raised concerns.
• Key lawmakers, including Senator Thom Tillis, have warned that Trump’s nominees will face rigorous evaluations.

Hassett’s Reaction

Hassett mentioned he feels “humbled and gratified” by Trump’s statement about his role. He commended the President, describing him as “such a good guy.” This reflects Hassett’s commitment to continue contributing from the West Wing.

Search Process for Fed Chair

Bessent, who has been assigned to lead the search for the new Fed chair, has reportedly removed himself from consideration for the role, further complicating the scenario. The situation remains fluid as Trump weighs his options for this crucial economic position.