Washington (AFP) – US President Donald Trump on Tuesday hinted that he wants to nominate his chief economic adviser Kevin Hassett to replace outgoing Federal Reserve Chairman Jerome Powell next year. Introducing guests at a White House event attended by Hassett, Trump said: “It’s a great group, and I guess a potential Fed chair is here too.” He added: “I don’t know, are we allowed to say that, potential? He’s a respected person that I can tell you. Thank you, Kevin.”
At a meeting of his cabinet earlier in the day, Trump said he would announce his pick “probably early next year for the new chairman of the Fed.” “I think we probably looked at 10 and we have it down to one,” he said. Hassett, a PhD economist, is currently chair of the National Economic Council, a White House body which advises the president and his cabinet on policymaking. He frequently appears on television touting the president’s policies. During Trump’s first term, he served as chair of the Council of Economic Advisers, another body more dedicated to research and analysis.
While Hassett’s loyalty to Trump could open the doors to a Fed nomination, it is also likely to be a key discussion topic among the political and financial class as he seeks confirmation by the Republican-controlled Senate. He will have to convince Senators — and markets — that he is capable of preserving the central bank’s independence and won’t let inflation spiral out of control in the world’s biggest economy. He has joined Trump in publicly criticizing the Fed over its interest-rate decisions, calling for more cuts this year, though he has not used harsh language against Powell like the president.
The term of current Fed Chair Powell ends in May 2026. Trump tried unsuccessfully to hasten Powell’s departure, hurling insults and recriminations at the man he picked for the job during his first term in the White House. Since then, Trump has said he bitterly regrets this choice as Powell has resisted pressure to lower interest rates quickly enough. On Tuesday, Trump referred to the Fed chairman as a “stubborn ox” and alleged that the decision to not lower rates more quickly was motivated by personal animus.
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