Kevin Hassett Emerges as Leading Candidate for Federal Reserve Chair

2025-07-09 politics

Washington, Wednesday, 9 July 2025.
Kevin Hassett, an economic adviser to the White House, is now a front-runner to succeed Jerome Powell as Fed Chair. His potential appointment is pivotal amid critical monetary policy discussions.

Trump Administration Contemplating Successor

With Jerome Powell’s term as Federal Reserve Chair set to end in May 2026, the Trump administration is actively considering a range of candidates to succeed him. Among the contenders, Kevin Hassett, a current White House economic adviser, has emerged as a leading candidate. His extensive background in economic policy, coupled with his alignment with President Trump’s economic strategies, positions him as a strong contender for this critical role [1][2].

Economic and Political Landscape

The potential appointment of Kevin Hassett comes at a time when the economic landscape is characterized by significant challenges and uncertainties. The Federal Reserve’s monetary policy has been a focal point of contention within the administration. President Trump has frequently criticized Powell for his handling of interest rates, which he believes have not been adjusted quickly enough to bolster economic growth [3][4]. These tensions underscore the administration’s desire for a Fed chair who is more aligned with its economic vision.

Hassett’s Experience and the Road Ahead

Kevin Hassett’s previous tenure as Chair of the White House Council of Economic Advisers has been marked by advocacy for tax cuts and fiscal policies favoring economic expansion—a stance that resonates with Trump’s broader economic strategies. In this role, Hassett was instrumental in formulating policies intended to stimulate growth and address inflation, skills that could prove invaluable for the Federal Reserve at this juncture [5]. Appointing a new Fed chair will not only impact the trajectory of U.S. monetary policy but also influence global economic stability, showcasing the profound implications of this decision [6].

The Broader Implications

While the discussions are ongoing, the selection of a new Fed chair has far-reaching implications for both domestic and international markets. Observers are keenly watching whether the administration will choose a candidate who maintains the Fed’s independence or one who aligns closely with Trump’s policy preferences. This decision will likely impact investor confidence and could either stabilize or disrupt the current economic forecast [7][8].

Sources

Federal Reserve Kevin Hassett