Hassett Leads Trump’s Fed Chair Race as Powell Feud Grows

​A New Favorite Emerges in the Fed Chair Sweepstakes
The White House is closing in on its next pick to lead the Federal Reserve, and one name is pulling ahead: Kevin Hassett. Trump allies increasingly see the National Economic Council director as the front-runner to replace Jerome Powell when Powell’s chair term ends in mid-2026.

Why Hassett? Simple: trust. He’s been in Trump’s orbit for years, speaks the president’s economic language, and is viewed as someone who wouldn’t fight the White House’s push for lower rates.

Trump Wants a Cutter, Hassett Sounds Like One
Hassett has been blunt about where he stands. He’s said that if he were in the Fed chair seat today, he’d already be cutting rates. In his view, the data argues for faster easing — and he’s also criticized the Fed’s pandemic-era inflation missteps.

That stance fits neatly with Trump’s long-running frustration that Powell hasn’t cut aggressively enough. The relationship has soured to the point where the Fed is now a regular target in Trump’s public attacks.

Markets React to the “Trump Ally” Signal
Investors didn’t wait for an official announcement. The moment Hassett’s name started circulating as the likely pick, Treasuries rallied and long-term yields dipped — a sign traders think a Hassett-led Fed might lean dovish, or at least feel more political pressure to do so.

It’s a reminder that Fed leadership isn’t just a personnel story. It shapes real expectations about borrowing costs, risk appetite, and the entire market mood.

A Shortlist of Five — and a Fast-Approaching Decision
Hassett may be leading, but he isn’t alone. The final group reportedly includes former Fed official Kevin Warsh, current Fed governor Christopher Waller, Fed Vice Chair for Supervision Michelle Bowman, and BlackRock’s Rick Rieder.

Treasury Secretary Scott Bessent is running the interviews and says the White House could announce a choice before late December. After that, the nominee still has to survive Senate confirmation — never a sleepy process when the Fed is involved.

The Power Struggle Over Fed Independence
This pick comes with a bigger subtext: how independent the Fed stays in Trump’s second term. Trump has openly mused about firing Powell, criticized the Fed’s leadership and spending, and is already entangled in legal fights over other Fed officials.

A chair like Hassett would likely be seen as a bridge between the Fed and Trump’s economic agenda — but critics worry it could also tilt the central bank closer to political influence.

Bottom Line
​Hassett’s rise reflects Trump’s goal for the next Fed chair: someone loyal, rate-cut friendly, and aligned with his economic vision. Whether that produces smoother policy or louder controversy depends on one thing — whether the Fed can keep steering by data, even when the White House wants the wheel.