The economist and longtime adviser is in the running to take the top spot at the Federal Reserve — and change its direction
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In the race to determine who will become the next chair of the Federal Reserve, one name keeps rising to the top of the list: Kevin Hassett. The 63-year-old economist and longtime Trump adviser is being floated as a leading contender to replace current Fed Chair Jerome Powell when his term ends in 2026.
Though nothing is final, and the selection process remains fluid, Hassett’s track record offers some clues as to why he’s become a serious candidate — and why his nomination would mark a major shift in central bank leadership.
Hassett has held a range of influential roles during and after Trump’s first term, including chair of the Council of Economic Advisers and director of the National Economic Council. His resume is stacked with academic credentials, private-sector experience, and deep connections in conservative economic circles.
More importantly, perhaps, is that he’s remained one of the rare economic figures to retain Trump’s trust across both political campaigns and administrations. That loyalty could prove decisive. Trump has made no secret of his dissatisfaction with Powell, who he recently said was doing a “terrible job,” arguing that interest rates should be three points lower.
If Trump wants a Fed chair who supports his aggressive push for lower interest rates, Hassett might fit the bill. He has publicly aligned himself with that agenda and recently stepped up his criticisms of Powell’s leadership. Still, that alignment raises questions: Would a Fed under Hassett be able to preserve its independence, or would it bend to political pressure?
That tension — between familiarity with Trump and the expectations of monetary policy independence — will be front and center if Hassett is tapped for the job. He wouldn’t be the only one under consideration, though.
Several other names are circulating, including former Fed governor Kevin Warsh, current Fed governor Christopher Waller, and Treasury Secretary Scott Bessent. Each brings their own strengths: Warsh has credibility with markets and central bank veterans, Waller knows the institution inside and out, and Bessent remains deeply involved in shaping trade policy.
But none has the combination of political loyalty, economic credentials, and communication savvy that Hassett brings to the table.
Whoever gets the nod will face intense scrutiny — not just from investors but also from within the Fed itself. The central bank has faced plenty of criticism lately, from the pace of interest rate cuts to the cost of renovating its Washington headquarters. The next chair will inherit those debates and more, with financial stability, inflation, and independence all on the line.
While Powell’s term runs until May 2026, the White House is reportedly considering making a decision as early as this summer. If Hassett is chosen, he could first join the Fed’s board in early 2026, filling an expected vacancy ahead of a formal transition.
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