Kevin Hassett Emerges as Leading Candidate for Next US Federal Reserve Chair

President Donald Trump has indicated his choice for the next Federal Reserve chair. The news came as Jerome Powell’s term nears its end in May 2026. Trump made the statement while speaking to reporters aboard Air Force One on Sunday.

He declined to name the individual publicly. However, multiple reports and betting markets point to Kevin Hassett as the frontrunner. This potential nomination signals a major shift in US monetary policy direction.

Market Bets and Economic Alignment Drive Speculation

According to Bloomberg, prediction markets show strong confidence in Hassett’s selection. On Polymarket, traders place his odds at 72%. The next closest candidate, Kevin Warsh, trails significantly at just 12%.

This speculation is not without foundation. Hassett’s public views align with Trump’s economic agenda. He has been a vocal advocate for lowering interest rates to stimulate growth.

The market has already reacted to the possibility. Last Monday, the yield on the 10-year US Treasury note fell sharply. It dropped to 4%, its lowest level in a month, as investors priced in future rate cuts.

A Stance Built on Data and Political Priorities

Hassett’s rationale for rate cuts is data-focused. He has stated publicly that current economic indicators support immediate action. “If I were chair I would be cutting rates right now because the data suggests that we should,” he said.

This stance directly supports President Trump’s frequent criticism of the Fed’s current policy. Trump has often argued that rates are too high, hindering economic expansion. A Hassett-led Fed would likely pursue a more aggressive easing cycle.

Treasury Secretary Scott Bessent is managing the selection process. Reports suggest an announcement could come before Christmas. The official nomination would then require confirmation by the US Senate.

Info at your fingertips

Why does Kevin Hassett support cutting interest rates?

Hassett believes current economic data justifies lower borrowing costs. He argues this would make mortgages and car loans cheaper for Americans. His position aligns with a growth-focused economic agenda.

What has been the market reaction to this news?

US Treasury yields fell, with the 10-year note hitting 4%. This indicates investor expectation of future rate cuts. Riskier assets like tech stocks and cryptocurrencies also saw positive momentum.

Who is currently the Federal Reserve Chair?

Jerome Powell is the current Chair of the Federal Reserve. His term is set to expire in May 2026. The process to name his potential successor is now underway.

What is the next step in the nomination process?

President Trump must formally announce his nominee. That person must then be confirmed by the US Senate. This process can take several months and involves congressional hearings.

Has Kevin Hassett commented on the reports?

Yes. Hassett appeared on CBS’s Face the Nation and called the reports “rumor.” He did, however, note the positive market reaction to the speculation surrounding his potential candidacy.