Trump signals Hassett may stay at White House, reshaping Fed chair race
The president on Friday suggested that Kevin Hassett could remain in his current job as head of the National Economic Council.
President Donald Trump on Friday suggested that Kevin Hassett, a top contender to run the Federal Reserve, could remain in his current job as head of the National Economic Council, casting new uncertainty over the race to succeed Fed Chair Jerome H. Powell.
Speaking at a healthcare event at the White House, Trump said Hassett performed well as a surrogate for the president on television and the potential for him to vacate his current role was a “serious concern.”
“I actually want to keep you where you are if you want to know the truth. We don’t want to lose him, Susie,” Trump said, addressing White House Chief of Staff Susie Wiles. “We’ll see how it all works out.”
Analysts and officials close to the White House have said the sweepstakes to succeed Powell may have been scrambled this week when Powell publicly disclosed that the Justice Department had launched a criminal investigation tied to a massive office renovation project for the central bank’s headquarters overlooking the National Mall.
Powell and supporters characterized the move as an attempt to undercut the Fed’s independence on monetary policy. At least two Republican senators said they won’t vote for any nominee to replace Powell until the legal matter is resolved. And some Fed watchers have said the Senate might be less inclined to approve someone so close to the White House.
Former Trump strategist Stephen K. Bannon cast that pushback against Hassett in far more combative terms. “The Globalist circle-the-wagons with all the living former Fed Chairs immediately defending Powell sealed Hassett’s fate,” he wrote in a text message. “The anti-Trump Senate cabal signaled they would never confirm someone professionally close to the President.”
Trump first nominated Powell to the top Fed role in 2017 but quickly soured on him over interest-rate policy. At a January 2020 signing ceremony, Trump suggested that he wished he had instead tapped former Fed governor Kevin Warsh, who was a runner-up for the job.
“I would have been very happy with you,” Trump said, singling out Warsh. “I could have used you a little bit here. Why weren’t you more forceful when you wanted that job?”
Analysts said the remarks could place Warsh in a stronger position to become the next chair of the Fed when Powell’s tenure in the role ends in May. Trump had signaled this week that he was choosing between one of “the two Kevins.” He was expected to announce his choice as early as this month.
In one sign of Warsh’s improved odds, investors in betting markets early Friday afternoon assessed the former Fed governor had a roughly 60% change of replacing Powell, up from around 40% earlier in the day.
Other candidates in the mix for the role include sitting Fed governor Christopher Waller and Rick Rieder, an executive at BlackRock. Treasury Secretary Scott Bessent has helped spearhead the process for selecting Powell’s replacement but has said he isn’t interested in the role.
Hassett has acknowledged that the race remains unsettled. Speaking at a Wall Street Journal conference in December, he cautioned against assuming a final decision had been made. “He makes his choice, and then he changes his mind, too,” Hassett said, referring to the president.