Powell, meanwhile, has maintained a cautious approach through 2025, citing uncertainty over government-imposed rates. The Fed cut its key interest rate by 25 basis points in September and October. Economists expect another cut in interest rates Federal Open Market Committee December meeting.
Hassett, a close Trump ally, is expected to take the president’s interest rate agenda to the Fed, according to sources familiar with the matter who spoke to Bloomberg on condition of anonymity.
Before being appointed to the National Economic Council this year, Hassett served as a senior advisor and chairman of the Council of Economic Advisors from 2017 to 2019. He returned in 2020 to lead the Trump administration’s economic response to the COVID-19 pandemic.
He also worked at the American Business Institute and advised Republican presidential campaigns, including those of John McCain, George W. Bush and Mitt Romney.
Despite his lack of Federal Reserve experience, The Economic Times has also called Hassett the “leading candidate” for the role, pointing to his eight years with Trump and a brief stint at Jared Kushner’s (Trump’s son-in-law) private equity firm.
“We recently discussed on our podcast that the White House lost out when Powell turned hawkish and Fed members tried to reverse the December cut,” HousingWire Lead analyst Logan Mohtashami said. “Trump now no longer trusts any Fed members and does not want to take the risk with (Christopher) Waller or (Michelle) Bowman.”
The candidate is expected to serve a 14-year term as governor from February 1, currently held by Stephen Miran following Adriana Kugler’s resignation in August. Kugler’s term was set to expire at the end of January 2026.
The candidate is expected to first be appointed Fed governor before being nominated as chairman. Although current Fed Chairman Powell’s term as chairman expires in May, his governor’s seat will continue for two years.
Treasury Secretary Scott Bessent told CNBC’s Sara Eisen in October that he would give President Trump “three or four candidates to interview” shortly after Thanksgiving. Bessent has been interviewing candidates since the summer, according to reports from Bloomberg.
Trump told reporters in the Oval Office last week that “I think I already know my choice,” multiple media outlets reported.
CNBC previously reported on October 10 that the five candidates are Hassett; Michelle Bowman, Fed vice chair of supervision; Fed Governor Christopher Waller; former Fed Governor Kevin Warsh; And BlackRock director Rick Rieder.
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