President Donald Trump cast doubt on Kevin Hassett’s Fed Chair bid Friday, saying he may keep him in his current position.
Trump Wants Hassett At NEC, Not Fed
Trump praised Hassett’s television appearance Friday morning and said he’s concerned about losing his communication skills if Hassett moves to the Fed.
“Kevin Hassett is so good. I’m saying, ‘Wait a minute, if I move him—these Fed guys, certainly the one we have now, they don’t talk much.’ I would lose you. It’s a serious concern to me,” Trump said at the White House event.
Trump told Hassett directly: “We don’t want to lose him, Susie, but we’ll see how it all works out,” referencing White House chief of staff Susie Wiles.
Former Fed governor Kevin Warsh, another favorite to succeed current Chair Jerome Powell has risen to 59% on Polymarket while Hassett crashed to 16%.
Current Fed governor Christopher Waller held at 14%.
How Hassett Lost The Race
Hassett, director of the White House National Economic Council, was the frontrunner until he defended the Justice Department’s criminal investigation into Powell during a CNBC interview Monday.
“If I’m here sitting in the White House and somebody says, ‘Hey, Justice Department wants to look at all your emails,’ I would welcome the opportunity to show them that I’m fine,” Hassett said, comparing the criminal probe to routine oversight.
The comments triggered backlash from economists who called them inappropriate for someone seeking to lead an independent central bank.
Former Obama adviser Jason Furman, who supported Hassett’s 2017 confirmation, said “it was sad but unsurprising to see him accepting this as an aboveboard, legitimate, independent inquiry.”
Two GOP Senators Block Any Nominee Until Probe Ends
Republican Senators Thom Tillis (North Carolina) and Lisa Murkowski (Alaska) said they won’t vote for any Fed chair nominee until the Powell investigation is resolved.
“I wouldn’t consider my mother for the post under the current conditions,” Tillis said, adding that candidates closer to Trump would face harder questions about independence.
Tillis sits on the Senate Banking Committee that oversees Fed nominations and could block any pick with Democratic backing.
Warsh Takes The Lead As Trump Ally Without White House Baggage
Warsh, who served on the Fed board from 2006 to 2011, now leads the race because he isn’t in the White House defending controversial Trump attacks on the Fed daily.
Trump was impressed by Warsh in an interview last month, telling associates over the holidays he was struck by Warsh’s “acumen and good looks,” according to people familiar with the matter.
Warsh hasn’t spoken publicly on the Powell investigation, giving him distance from the controversy while maintaining Trump’s confidence.
Waller Emerges As Independence Alternative
Fed governor Christopher Waller, who Trump appointed in 2020 but doesn’t have close ties to the president, could benefit if the confirmation becomes a referendum on Fed independence.
Tillis said choosing Waller “would certainly address a lot of the concerns” about independence since he doesn’t work alongside Trump.
Analysts said Waller’s lack of Trump connections—previously seen as a liability—could become an asset if senators prioritize central bank credibility over presidential loyalty.
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