Fed Chair Pick

President Trump said he planned to announce his selection for Federal Reserve chair in early 2026, with Kevin Hassett emerging as the likely choice.

Context

Trump has spent months criticizing current Fed Chair Jerome Powell for not cutting interest rates quickly enough. Powell's term as chair expires in May 2026, though he could remain on the board as a governor for two more years. Trump has made clear he expects his nominee to pursue aggressive rate cuts, something the current Fed leadership has resisted due to inflation concerns.

Selection Narrows

Trump said on Tuesday that he had narrowed the list of candidates to one person after considering approximately 10 finalists. He also indicated at a separate event that Hassett was a "potential Fed chair," fueling speculation that the selection was made.

Treasury Secretary Scott Bessent has been overseeing the search process and conducting interviews with candidates. The final list included Fed Governors Christopher Waller and Michelle Bowman, former Fed Governor Kevin Warsh, and BlackRock executive Rick Rieder, though Hassett appears to be the frontrunner.

Hassett’s Background

Hassett is the current director of the National Economic Council – a government body that advises the president on economic policy.

Hassett has previously served as an economic advisor on presidential campaigns for prominent republicans, including McCain, W Bush, and Romney, and served as the chair of the Council of Economic Advisers during Trump's first term. He also briefly worked at the Fed, with former Fed staffers describing him as smart and capable.

Reactions

Wall Street investors have expressed concern about Hassett's potential appointment, with critics worried that Hassett's close alignment with Trump could threaten the central bank's independence.

However, supporters praise Hassett's qualifications, with one former Trump adviser saying Hassett possesses a "unique ability" to translate complex economics into clear language. Bessent said that the Fed chair is ultimately just one vote among many policymakers, suggesting concerns about excessive influence were overstated.