The White House could announce the next chair of the US Federal Reserve anytime soon. Last week, Treasury Secretary Scott Bessent told CNBC that President Donald Trump has a “very good chance” of naming Powell’s replacement before Christmas.
Although there were several contenders for the top job at the US Fed, Kevin Hassett has emerged as the front-runner to replace Federal Reserve Chair Jerome Powell when his term ends in May, Bloomberg reported.
Who is Kevin Hassett
The National Economic Council in the United States is currently led by Dr. Kevin Hassett. Before his return to the White House as President Trump’s Senior Advisor to encourage data-driven decision-making in response to the coronavirus, he was the 29th Chairman of the President’s Council of Economic Advisers from 2017 to 2019.
Throughout his time in the Trump administration, Hassett played a significant role in shaping internal and external discussions on almost every economic issue, from trade and taxation to drug addiction and deregulation.
Hassett has appeared on Fox, Fox Business, CNBC, MSNBC, Bloomberg, CNN, and other networks as the White House’s principal public speaker on economic policy and the status of the economy. On occasion, he was asked to host the White House press briefings on television.
Kevin Hassett and Rate Cuts
Currently holding the position of Director of the National Economic Council, Hassett is one of Trump’s top economic advisors. In recent conversations with the media, Hassett has echoed Trump’s criticism of the Fed’s current leadership for failing to reduce interest rates swiftly enough.
The US Fed is likely to cut interest rates by a quarter-point at its upcoming meeting in December, following similar cuts at its last two meetings. However, Fed officials are divided on whether to maintain higher interest rates to combat inflation above the 2% target or to lower them to support the struggling job market.
Hassett, in a Yahoo Finance interview, argued that the bank should reduce interest rates despite September’s job growth, criticized Powell’s monetary policy as “partisan,” and suggested that the next Fed chair should “clean house.”
In recent interviews, he has defended Trump’s economic policies, including the tariffs, and expressed his belief that inflation will decrease to about 1% next year alongside robust economic growth.
FOMC Members
As of now, it is unclear who Hassett would replace on the 12-member FOMC, as he, unlike other contenders Michelle Bowman and Christopher Waller, does not currently serve on the board. Although Powell’s term as a member of the Fed’s board of governors expires in 2028, he may choose to remain. Powell has declined to comment on whether he will step down after his term as Fed chair ends in May 2026.
