Washington (United States) (AFP) – US President Donald Trump signaled Friday that he would be reluctant to lose his economic adviser Kevin Hassett, a top contender to be the next Federal Reserve chairman. “I actually want to keep you where you are if you want to know the truth,” Trump told Hassett during an event at the White House. “If I move him, these Fed guys, certainly the one we have now, they don’t talk much,” the US leader added. “I would lose you. It’s a serious concern to me.”
Trump’s comments come as Jerome Powell is due to step down from the helm of the US central bank in May. The president has previously said he intends to announce his nominee to succeed Powell in the coming weeks. Hassett is currently the director of the White House National Economic Council, and has been seen as a front-runner for the Fed chief position. US markets seesawed after Trump’s remarks, quickly regaining ground.
Trump indicated Friday that Hassett’s departure would deprive his administration of an important messenger on the economy. “We don’t want to lose him,” Trump said. “We’ll see how it all works out.”
– Federal investigation –
The president has made no secret of his disapproval of Powell, criticizing him repeatedly for not supporting more aggressive interest rate cuts. But Trump’s efforts to nominate a new Fed chief could encounter obstacles. Republican Thom Tillis, who sits on the Senate Banking Committee, recently vowed to oppose the confirmation of any Fed nominee until a Department of Justice probe into Powell is fully resolved. Powell is being investigated over renovation costs at the central bank’s headquarters — a probe that has drawn sharp criticism from former Fed leaders.
The heads of major central banks elsewhere have thrown their support behind Powell too — stressing the importance of preserving the Fed’s independence. US Treasury Secretary Scott Bessent said during an interview Friday broadcast by Fox News that he “can’t comment on the ongoing investigation” but suggested there were some “unanswered inquiries.” “So perhaps if the DC district attorney, or the DC US Attorney, gets some answers and the answers are satisfactory, then we can move on,” Bessent told host Larry Kudlow.
Besides Hassett, other key contenders for the top job at the bank include former Fed official Kevin Warsh, Fed governor Christopher Waller, and Rick Rieder of BlackRock.
© 2024 AFP
