Kevin Hassett, director of the National Economic Council (NEC), returned to the center of the US economic agenda at . The possible appointment puts the spotlight on a long trajectory in establishment Republican and a moment of greater tension over the role of the central bank.
Hassett’s possible appointment carries weight not only because of his alignment with Trump, but because it occurs amid discussion about a broader review of the Fed’s performance. The government is considering changes to the scope of the institution and the management of monetary policy.
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Still, the mere chance that he would be the nominee rattled the markets, which . Agents consider it.
Trajectory
A former senior economist at the Fed and researcher at the American Enterprise Institute, Hassett was part of the Republican Party’s economic policymaking circle for two decades. He was an advisor to John McCain in 2000, George W. Bush in 2004 and Mitt Romney in 2012. He also worked at the Hoover Institution and was a professor at Columbia Business School.
This background guaranteed him broad support when Trump nominated him, in 2017, to head the Council of Economic Advisers (CEA). Names like Alan Greenspan and Ben Bernanke endorsed the nomination.
During the first Trump administration, Hassett became one of the main voices defending the government’s tax cuts and tax agenda. He also supported tariffs, although he acknowledged they could affect growth. After leaving the White House in 2019, he remained an informal advisor to Trump.
Upon returning to government, now in charge of the NEC, he began to occupy one of the most influential positions in the White House’s economic design, coordinating policies with the Treasury and USTR.
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Criticism of the Fed
In recent months, Hassett has toughened his criticism of the Fed. He said the institution was “late” in cutting interest rates and suggested that errors in the headquarters renovation budget could justify the dismissal of Jerome Powell. It also raised doubts about supposed “partisan standards” in the release of employment data.
The statements upset former allies. Gregory Mankiw, chief economist in the George W. Bush administration, called the possibility of a chair willing to align decisions with political preferences. Dean Baker, with whom Hassett has written articles, said that today he tends to follow Trump’s lead.
Still, Hassett maintains support from relevant figures. Michael Boskin, a former adviser to the George HW Bush administration, says he would be a “good choice,” citing his ability to deal with Trump and drive internal changes at the Fed if the administration moves in that direction.
