“Powell’s exit is near, Hassett’s rise is unclear, but markets watch with both hope and fear.”
Washington is filled with excitement after former U.S. President Donald Trump openly disclosed that his top economic adviser, Kevin Hassett, could be the future chair of the Federal Reserve.
Trump gestured to Hassett during a White House function and remarked, “I guess a potential Fed chair is here too,” which immediately sparked conjecture in the financial and political worlds.
Hassett is well-known inside Washington. Currently serving as the head of the National Economic Council and providing economic policy advice to the president and Cabinet, he has a Ph.D. in economics.
He also previously served as the Chair of the Council of Economic Advisers, offering him considerable experience in research, analytics, and public policy.
According to reports, Trump has selected just one contender, and a formal announcement is expected early next year. If chosen, Hassett would replace current Fed Chair Jerome Powell, whose tenure ends in May 2026.
However, Hassett faces a tough route. His loyalty to Trump might help him secure the nomination, but it might also cast doubt on the independence of the central bank. Markets and senators will want proof that he can manage inflation and interest rates without political pressure.
In line with Trump’s demands for lower borrowing costs, Hassett has publicly backed additional rate reductions this year. He hasn’t personally attacked Powell, in contrast to Trump.
With Powell insulted by Trump as a “stubborn ox”, Wall Street is watching closely. If Hassett obtains the post, it may represent a new era for U.S. monetary policy, impacting interest rates, inflation, and the global economy.
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