Trump Backs Hassett and Warsh as Top Fed Chair Candidates in 2026

President Donald Trump has highlighted Kevin Hassett, director of the National Economic Council, and Kevin Warsh, a former Federal Reserve governor, as leading candidates to succeed current Fed Chair Jerome Powell, whose term is set to expire in May 2026 [1]. In a recent interview on CNBC’s “Squawk Box,” Trump referred to the two as “both Kevins” and praised Warsh for being “very good.” He also ruled out Treasury Secretary Scott Bessent, stating Bessent “does not want” the position and “wants to stay where he is” [2]. Trump now narrows the potential candidates to four individuals, including Hassett and Warsh, while leaving two unnamed contenders in consideration [3].

The comments have immediately influenced prediction markets, where Hassett and Warsh are now each seen as having a 35% chance of being named the next Fed chair [1]. Christopher Waller, a current Fed Governor not mentioned by Trump, follows with a 15% probability, while former Trump economic advisor Judy Shelton stands at 6%. Other names, including former World Bank president David Malpass and even Trump himself, receive 4% and 1% odds, respectively [1].

Both Hassett and Warsh have long advocated for lower interest rates, a stance that aligns with Trump’s criticisms of Powell for maintaining elevated rates. This potential shift in monetary policy direction has heightened market speculation about how the Fed’s approach might evolve under new leadership. The recent departure of Fed Governor Adriana Kugler has also created an opening for Trump to appoint a new member to the Fed Board of Governors, a role that could eventually lead to the chair position [1].

By publicly endorsing Hassett and Warsh, Trump has injected a new level of clarity into what was previously an open-ended nomination process. Removing Bessent from the running reduces the number of viable candidates and signals a preference for individuals with deep economic policy experience and ideological alignment with his administration’s goals [2]. The focus on “both Kevins” also reflects a strategic effort to maintain consistent economic messaging, especially with the 2024 election approaching and inflation remaining a key political concern [3].

Historically, Fed chair nomination cycles have led to increased market volatility, particularly in dollar-denominated assets such as equities and cryptocurrencies. The 2017 cycle saw significant market movements as investors reevaluated economic forecasts with the prospect of a new chair. Kanalcoin analysts suggest the current scenario could mirror those past events, where macroeconomic shifts heavily influence crypto market behavior [1]. Given the Federal Reserve’s central role in shaping global financial conditions, the eventual decision will likely have a meaningful impact on financial stability and regulatory strategies.

Sources:

[1] Prediction markets see Hassett and Warsh as Fed chair frontrunners as Trump talks up the Kevins. (https://www.cnbc.com/2025/08/05/prediction-markets-see-hassett-and-warsh-as-fed-chair-frontrunners-as-trump-talks-up-the-kevins.html)

[2] Trump rules out Bessent for Fed chair. (https://www.reuters.com/world/us/trump-rules-out-bessent-fed-chair-2025-08-05/)

[3] Trump says Treasury Secretary Bessent 'does not want' to be Fed chair, but four others in running. (https://www.cnbc.com/2025/08/05/trump-says-treasury-secretary-bessent-does-not-want-to-be-fed-chair-but-4-others-in-running.html)