Kevin Hassett, director of the White House National Economic Council, is seen by President Donald Trump’s aides and allies as the favorite to take over as Federal Reserve chairman, according to people familiar with the discussions, as the search for a new head of the central bank enters its final weeks.
With Hassett, Trump would have a close ally in the Fed that he trusts and knows well, the sources said on condition of anonymity. According to some of them, Hassett is considered someone who would take the president’s stance on interest rate cuts to the Fed, something that Trump has been trying to influence for years.
Still, Trump often makes personnel and policy decisions unexpectedly, meaning nothing is set in stone until the official announcement, they said.
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White House Press Secretary Karoline Leavitt said in a statement: “No one really knows what President Trump will do until he does it. Stand by!”
Appointments to the Fed chairmanship and board are historically the most direct ways for a president to influence the central bank. Trump appointed the current president, Jerome Powell, for his first term, but regretted it when Powell did not accelerate interest cuts at the pace desired by the president.
Hassett is seen as aligned with Trump’s views on the economy, including the need to reduce interest rates. In an interview with Fox News on November 20, he said he would “cut rates now” if he were Fed chairman because “the data suggests we should.” Hassett also criticized the central bank for losing control of inflation following the pandemic.
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The Fed has been a frequent target of Trump, who accused Powell of being “too late” in reducing credit costs and even publicly considered his dismissal. The president also attacked reforms on the central bank’s campus, and the White House is today in a legal dispute over Trump’s attempt to fire director Lisa Cook.
The scenario increases pressure on Treasury Secretary Scott Bessent, responsible for the process of choosing the next Fed president, to balance names that are favorable to lower interest rates and that, at the same time, have the confidence of the president and the financial market.
After keeping interest rates stable for much of 2025, the Fed began reducing them in the autumn of the Northern Hemisphere, with cuts of 25 basis points in September and October. But authorities have shown growing divergences over the outlook for inflation and the labor market, making a new cut at the December meeting uncertain.
Bessent told CNBC on Tuesday that there is a good chance Trump will announce his Fed pick next month, before the Christmas holiday on December 25.
Trump himself has already indicated that he is close to a decision. On November 18, he stated: “I think I already know my choice”, without revealing names. In September, Trump said Hassett, former Fed head Kevin Warsh and current director Christopher Waller made up the top three candidates.
Interview process
Since the summer, Bessent has been leading the process to replace Powell, interviewing nearly a dozen candidates, now narrowed down to five: Hassett, Warsh, Waller, Fed Vice Chair of Supervision Michelle Bowman and BlackRock’s Rick Rieder.
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Bessent said interviews wrap up this week. A smaller group of finalists will soon meet with White House Chief of Staff Susie Wiles and Vice President JD Vance.
The concentration of support around Hassett comes as Trump shows growing frustration with Powell. Last week, Trump called the Fed chairman “grossly incompetent” and said he would love to fire him if not for Bessent advising him to wait. Jokingly, he added that if Bessent didn’t help secure lower interest rates, he would also fire the Treasury secretary.
Despite the joke, Bessent maintains a good relationship with Trump, who has said several times that he considers the secretary as a potential candidate to lead the Fed. Bessent says he likes the position at the Treasury and has no interest in presiding over the central bank.
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The next president is expected to be appointed to a 14-year term on the Fed board, starting February 1. The position that expires on that date is held by Stephen Miran, currently on leave from the White House Council of Economic Advisers. Powell’s term as Fed chairman ends in May 2026, although he can remain on the board for another two years.
Powell has not said whether he intends to leave the board when his term as chairman expires. If he does, the government will have one more vacancy to fill next year.
© 2025 Bloomberg L.P.
