Trump Eyes Kevin Hassett as Next Fed Chair, Signaling Policy Shift

Kevin Hassett is reportedly the top candidate to lead the Federal Reserve. President Donald Trump is considering him to replace Jerome Powell. The current Fed Chair’s term ends in May 2026. A final decision is expected soon.

This potential move signals a major shift in US monetary policy. According to Bloomberg, Hassett’s name has gained significant momentum. His alignment with Trump’s economic agenda makes him a leading contender.

Hassett’s Background and Economic Philosophy

Kevin Hassett is a seasoned economist with a PhD. He previously chaired the Council of Economic Advisers. He now serves as Director of the National Economic Council.

His philosophy centers on pro-growth policies. He supports tax cuts and deregulation. Hassett has been openly critical of the Fed’s current interest rate path.

He advocates for a more accommodating monetary stance. This aligns perfectly with the administration’s goals. A Bloomberg report from August highlights his focus on data-driven growth.

Potential Impact on Federal Reserve Independence

This potential appointment raises questions about Fed independence. Hassett has questioned the central bank’s current transparency. He backs the ‘mission creep’ criticism of its current operations.

Market economists express concern. A CNBC survey noted worries about long-term stability. Political influence over interest rates is seen as a macro risk.

The Washington Post reported on these apprehensions in July. Fed watchers worry a Hassett-led Fed might struggle to combat future inflation. The institution’s ability to make tough, apolitical decisions could be compromised.

The Field of Contenders

Hassett is not the only candidate. He is among a shortlist of three finalists. The others are former Fed governor Kevin Warsh and sitting governor Christopher Waller.

Treasury Secretary Scott Bessent has removed himself from consideration. Trump has publicly acknowledged this trio. Their policy leanings differ significantly.

Warsh is viewed as more hawkish on inflation. Waller tends to focus on employment. Hassett distinctly prioritizes growth and rate cuts.

The selection of Kevin Hassett as Fed Chair would represent a decisive turn toward a growth-first monetary policy. His close ties to the White House suggest a Fed more aligned with presidential objectives. This could fundamentally reshape the US economic landscape for years to come.

Thought you’d like to know

Who is Kevin Hassett?

Kevin Hassett is an economist and current NEC Director. He previously served as Chair of the Council of Economic Advisers. He is a known advocate for pro-growth economic policies.

What is Hassett’s stance on interest rates?

He has been critical of the Fed’s recent rate hikes. He publicly argues for a more accommodating monetary policy. His view aligns with supporting the administration’s growth objectives.

When will the next Fed Chair be selected?

The current term for Chair Jerome Powell ends in May 2026. The President is expected to make a nomination well before that date. The process is closely watched by financial markets.

Why is this potential appointment significant?

It could signal a major shift in US monetary policy direction. It also raises questions about the traditional independence of the Federal Reserve from the White House.

Who are the other candidates for Fed Chair?

The other top contenders are Kevin Warsh and Christopher Waller. Treasury Secretary Scott Bessent has opted out of consideration. The field is now narrowed to a small group.