President Donald Trump said on Friday that Kevin Hassett may not become the next Federal Reserve Chair. Trump said he is thinking about keeping Hassett in his current job instead of moving him to the Fed. Hassett is currently the Director of the White House National Economic Council.
Trump praised Hassett’s TV interview earlier on Friday and said he likes how well Hassett communicates, as reported by Benzinga. Trump said Fed leaders usually do not speak much, and he fears losing Hassett’s strong communication skills. Trump said, “I would lose you,” showing concern about moving Hassett to the Fed. Trump directly told Hassett that the White House does not want to lose him.
Trump mentioned White House Chief of Staff Susie Wiles while discussing Hassett’s future. Betting markets now show former Fed Governor Kevin Warsh as the top choice for Fed Chair. Warsh’s chances rose to 59% on Polymarket. Hassett’s chances dropped sharply to 16%. Current Fed Governor Christopher Waller stands at 14% in betting odds.
Many economists reacted negatively to Hassett’s comments. Critics said the comments were inappropriate for someone seeking to lead an independent central bank. Former Obama adviser Jason Furman criticized Hassett’s stance on the investigation. Furman said it was “sad but unsurprising” that Hassett accepted the probe as legitimate. Furman had previously supported Hassett’s 2017 confirmation.
Tillis said even candidates close to Trump would face tough questions. Tillis sits on the Senate Banking Committee, which approves Fed nominees. This gives Tillis the power to block any nominee with Democratic support.
Trump said he may keep Hassett in the White House because he values his strong communication skills and does not want to lose him.
Q2. Who is leading the race to replace Fed Chair Jerome Powell now?
Former Fed governor Kevin Warsh is leading because he is seen as independent and not involved in current White House controversies.
Trump praised Hassett’s TV interview earlier on Friday and said he likes how well Hassett communicates, as reported by Benzinga. Trump said Fed leaders usually do not speak much, and he fears losing Hassett’s strong communication skills. Trump said, “I would lose you,” showing concern about moving Hassett to the Fed. Trump directly told Hassett that the White House does not want to lose him.
Trump mentioned White House Chief of Staff Susie Wiles while discussing Hassett’s future. Betting markets now show former Fed Governor Kevin Warsh as the top choice for Fed Chair. Warsh’s chances rose to 59% on Polymarket. Hassett’s chances dropped sharply to 16%. Current Fed Governor Christopher Waller stands at 14% in betting odds.
Why Kevin Hassett lost support
Hassett was the leading candidate until comments he made on CNBC earlier this week. Hassett defended a Justice Department criminal investigation into current Fed Chair Jerome Powell as stated by Benzinga. Hassett said he would welcome investigators looking at his emails if he were in Powell’s place. He compared the criminal probe to normal government oversight.Many economists reacted negatively to Hassett’s comments. Critics said the comments were inappropriate for someone seeking to lead an independent central bank. Former Obama adviser Jason Furman criticized Hassett’s stance on the investigation. Furman said it was “sad but unsurprising” that Hassett accepted the probe as legitimate. Furman had previously supported Hassett’s 2017 confirmation.
Senators block any fed pick for now
Two Republican senators said they will block any Fed Chair nominee for now. The senators are Thom Tillis of North Carolina and Lisa Murkowski of Alaska, as noted by Benzinga. They said no nominee will move forward until the Powell investigation ends. Tillis said he would not support any candidate under the current situation.Tillis said even candidates close to Trump would face tough questions. Tillis sits on the Senate Banking Committee, which approves Fed nominees. This gives Tillis the power to block any nominee with Democratic support.
Why Kevin Warsh is leading
Kevin Warsh served on the Federal Reserve Board from 2006 to 2011. Warsh is seen as a Trump ally but does not work in the White House now. This helps him avoid defending Trump’s attacks on the Fed. Trump was impressed by Warsh during an interview last month. Trump told associates he admired Warsh’s intelligence and appearance. Warsh has not commented publicly on the Powell investigation. This distance has helped Warsh avoid controversy.Christopher Waller as an Independence option
Christopher Waller is a current Federal Reserve governor. Trump appointed Waller to the Fed in 2020. Waller does not have close personal ties to Trump. Senators may prefer Waller if the focus shifts to Fed independence. Tillis said choosing Waller would reduce concerns about independence. Analysts say Waller’s distance from Trump could now help him. Waller’s lack of political ties may strengthen confidence in the Fed.FAQs
Q1. Why is Donald Trump unsure about Kevin Hassett becoming Fed Chair?Trump said he may keep Hassett in the White House because he values his strong communication skills and does not want to lose him.
Q2. Who is leading the race to replace Fed Chair Jerome Powell now?
Former Fed governor Kevin Warsh is leading because he is seen as independent and not involved in current White House controversies.
