Hassett Agrees: Trump May Be Right to Skip Him for Fed Chair
White House economic adviser Kevin Hassett has indicated that President Donald Trump may prefer him to remain in his current position, which would effectively rule him out for the next Federal Reserve chair. In a recent interview with Fox News, Hassett shared how he and Trump have debated the merits of his role in the West Wing versus a potential position at the Federal Reserve.
Trump’s Reluctance to Nominate Hassett
During a White House gathering, Trump expressed his hesitance about nominating Hassett as the successor to Jerome Powell, the current Fed chair. Trump’s candid admission suggested he values Hassett’s contributions at the White House, stating, “I actually want to keep you where you are, if you want to know the truth.”
A Competitive Field for Fed Chair
Hassett was once considered a frontrunner for the Federal Reserve chair position. Other potential candidates include:
- Christopher Waller – Fed Governor
- Kevin Warsh – Former Fed Governor
- Rick Rieder – BlackRock Inc. Executive
While recent developments show Hassett’s chances fading, Rieder’s candidacy appears to be gaining traction. Some analysts suggest Rieder could be easier to confirm in the Senate.
Implications of Ongoing Investigations
A criminal investigation into the Federal Reserve’s renovations has sparked significant pushback. Jerome Powell claimed that the Department of Justice initiated this inquiry to pressure the Fed into reducing interest rates. Notably, Senate Banking Committee member Thom Tillis has warned that any nominees from Trump will undergo intensive scrutiny.
Hassett’s Reflection on His Role
Commenting on his future, Hassett expressed gratitude for Trump’s remarks regarding his role. He stated, “There are a lot of great candidates, and it could well be that the president’s right to make the decision that this is the best place for me right now.” His current position is characterized by feelings of being “humbled and gratified” by Trump’s confidence in him.
As the situation develops, Powell’s term as Fed chair is set to conclude on May 15, creating an urgent need for a decision. The process for selecting the next chair is being managed by Bessent, who has also opted out of consideration for the post.
