Trump: looking at Hassett for Fed

Trump: looking at Hassett for Fed

In a significant personnel shift at the Federal Reserve, President Trump has been reportedly considering Kevin Hassett as a potential candidate for the Federal Reserve Chair position. This move comes amidst a flurry of activity surrounding the appointment process, which has seen the White House and Treasury Secretary Scott Bessenet initiate interviews with a slate of 11 candidates [1].

Hassett, currently serving as the White House National Economic Council Director, is known for his close relationship with Trump. His daily analysis of economic data for the President and his alignment with Trump's policy ideas have positioned him as a favored candidate. However, Hassett's lack of experience within the Federal Reserve system is a notable concern, given the technical and policy expertise typically required for the role.

The Federal Reserve Chair position is currently held by Jerome Powell, whose term will end in May 2026. According to the Fed's appointment rules, the new Chair must be a current governor. This leaves the field open for a diverse range of candidates, including those with strong academic backgrounds, practical policy experience, and extensive market knowledge.

Among the 11 candidates, Hassett is notable for his high political trust due to his close working relationship with Trump. However, his candidacy also raises questions about the balance between political influence and monetary policy independence. Other notable candidates include Christopher Waller, a current Federal Reserve governor with a strong academic background and practical policy experience, and Michelle Bowman, the Vice Chair for Supervision, known for her hawkish stance on monetary policy.

The appointment of a new Federal Reserve Chair is a critical moment for the U.S. economy, as the Fed's monetary policy decisions have a significant impact on interest rates, inflation, and economic growth. As the interview process continues, investors and financial professionals will closely watch the developments to gauge the potential direction of monetary policy under the new leadership.

References:
[1] https://www.chaincatcher.com/en/article/2203503