According to informed sources, as the search for the new chairperson of the Federal Reserve enters its final weeks, Kevin Hassett, director of the White House National Economic Council, is regarded by President Donald Trump’s advisers and allies as a leading candidate for the position of the next chairperson of the Federal Reserve.
Anonymous insiders disclosed that if Hassett is appointed, Trump will be able to place a close ally whom he knows and trusts at the Federal Reserve. Some insiders also said that Hassett is believed to bring Trump’s interest rate cut strategy to the Federal Reserve, and Trump has always hoped to control the Federal Reserve.
However, they said that it is well known that Trump often makes unexpected personnel and policy decisions, which means that the nomination cannot be regarded as a final result until it is officially announced.
White House Press Secretary Caroline Levitt said in a statement, “No one really knew what President Trump would do before he took action. Stay tuned!”
Historically, the selection of the chairperson and board members of the Federal Reserve has been the most direct way for the president to influence the central bank. During his first term, Trump nominated the current chairperson, Jerome Powell. However, Powell failed to push for interest rate cuts as Trump had wished, which left Trump regretful.
Hassett is regarded as being highly consistent with Trump’s economic views, including the belief that interest rates need to be further reduced. On November 20th, he told Fox News that if he were to become the chair of the Federal Reserve, he would “immediately cut interest rates” because “the data shows that we should do so.” Hassett also criticized the Federal Reserve for failing to control inflation after the pandemic.
U.S. Treasuries rose and the yield on the 10-year note fell below 4% for the first time in a month, buoyed by news that Hassett is a leading candidate for the position.
The Federal Reserve has repeatedly been a target of Trump’s attacks. The president has fiercely criticized Powell for being “too late” in failing to lower borrowing costs in time and has openly considered firing him. The president has also criticized the renovation project of the Federal Reserve’s campus. Currently, the White House is filing a lawsuit over Trump’s attempt to fire Federal Reserve governor Lisa Cook.
This has put pressure on Treasury Secretary Scott Bessent, who is responsible for selecting the next chairperson of the Federal Reserve, as he must carefully weigh the candidates who both support cutting borrowing costs and have the trust of the president and the financial markets.
After remaining on hold for most of 2025, the Federal Reserve began cutting interest rates this autumn, lowering them by 25 basis points in September and October respectively. However, Fed officials are increasingly divided over the outlook for inflation and the labor market, so it may be difficult to predict whether the Fed will cut rates again at its next meeting in December.
Bessenet told CNBC on Tuesday that Trump is very likely to announce the candidate for the chairperson of the Federal Reserve before the Christmas holiday on December 25 next month.
Trump himself has hinted that he is about to make a choice. On November 18, Trump said, “I think I already know my choice,” but did not reveal who he would pick as the chair. In September, Trump had said that Kevin Hassett, former Federal Reserve official Kevin Warsh and current Federal Reserve governor Christopher Waller were the three top candidates.
President Trump realized during his first term that having people who understand his direction and priorities is crucial, especially in key positions like the director of the FBI and the chair of the Federal Reserve, said Sean Spicer, who served as White House press secretary during Trump’s first term. “I can’t imagine him appointing someone to replace Jerome Powell with whom he doesn’t have a solid personal relationship.”
