Kevin Hassett, director of the White House National Economic Council, is the leading candidate to be the next Federal Reserve chair, advisers and allies of President Donald Trump told Bloomberg, as the deadline for a new Fed governor approaches.
Trump has voiced his opposition to the current Fed leader, Jerome Powell. Trump has threatened to fire Powell in previous reports and has voiced frustration that Powell has not lowered interest rates quickly enough.
Trump’s criticisms of the Fed have garnered support from other allies, including Federal Housing Finance Agency Director Bill Pulte, who has called for Powell’s resignation.
Powell, meanwhile, has maintained a cautious approach throughout 2025, citing uncertainty over tariffs imposed by the administration. The Fed delivered cuts of 25 basis points to its benchmark interest rate in September and in October. Economists anticipate another cut at the Federal Open Market Committee meeting in December.
Hassett, a close Trump ally, is seen as likely to bring the president’s interest rate agenda to the Fed, according to sources familiar with the matter who spoke with Bloomberg on the condition of anonymity.
Before being appointed to the National Economic Council this year, Hassett served as senior adviser and chairman of the Council of Economic Advisers from 2017 to 2019. He returned in 2020 to guide the Trump administration’s economic response to the COVID-19 pandemic.
He has also worked at the American Enterprise Institute and advised Republican presidential campaigns, including those of John McCain, George W. Bush and Mitt Romney.
Despite his lack of Federal Reserve experience, The Economic Times has also called Hassett the “leading candidate” for the role, noting his eight years with Trump and a brief stint at Jared Kushner’s (Trump’s son-in-law’s) private equity firm.
“We discussed in our podcast recently that the White House lost it when Powell went hawkish, and Fed members were trying to push back on the December cut,” HousingWire Lead Analyst Logan Mohtashami said. “Trump doesn’t trust any Fed members now and doesn’t want to risk it with (Christopher) Waller or (Michelle) Bowman.”
The nominee is expected to fill a 14-year term as governor beginning Feb. 1, which is currently held by Stephen Miran following the resignation of Adriana Kugler in August. Kugler’s term was set to expire at the end of January 2026.
The nominee is expected to be appointed first as a Fed governor before being nominated as chair. Although current Fed Chair Powell’s term as chair ends in May, his governor’s seat runs for another two years.
Treasury Secretary Scott Bessent told CNBC’s Sara Eisen in October that he would give President Trump “three or four candidates for him to interview” shortly after Thanksgiving. Bessent has been interviewing candidates since the summer, according to Bloomberg’s reporting.
Trump told reporters in the Oval Office last week that “I think I already know my choice,” multiple outlets reported.
CNBC previously reported on Oct. 10 that the five candidates are Hassett; Michelle Bowman, the Fed’s vice chair for supervision; Fed Gov. Christopher Waller; former Fed Gov. Kevin Warsh; and BlackRock executive Rick Rieder.
English