Kevin Hassett Fed Chair Trump’s Top Pick to Lead the Fed

Kevin Hassett, Trump’s top economic adviser, is the frontrunner to lead the Federal Reserve. Learn about his background, policies, and potential impact on interest rates and the US economy.
United States President Donald Trump says he has chosen his preferred candidate to become the next chair of the US Federal Reserve. Although he has not officially announced the nomination, Kevin Hassett—currently serving as director of the National Economic Council—is widely viewed as the frontrunner.

Prediction markets such as Kalshi recently placed Hassett’s nomination odds at 86%, far ahead of other potential contenders like former Fed governor Kevin Warsh and current governor Michelle Bowman.

Why the Federal Reserve Chair Matters

The Federal Reserve is one of the most influential institutions in global finance. Its decisions shape the direction of the US economy and impact markets worldwide. The Fed’s major responsibilities include:

• Setting and adjusting national monetary policy
• Supervising and regulating banks
• Ensuring the stability of the financial system
• Serving as a lender of last resort during crises

Of these roles, monetary policy—particularly interest rate decisions—is the most closely watched. When the Fed raises rates, borrowing becomes more expensive, slowing economic activity. When it cuts rates, loans become cheaper, stimulating business investment and consumer spending.

The Fed’s final meeting of 2025 is scheduled for next week, and the committee is expected to reduce rates by 0.25 percentage points, lowering them from the current 3.75–4% range.

Kevin Hassett: Background and Career Path

Kevin Hassett has spent more time in Trump’s inner economic circle than almost any other adviser. He previously served as chair of the Council of Economic Advisers during Trump’s first term and later rejoined the White House as an adviser during the COVID-19 pandemic.

Hassett is known for:

• His academic background at Columbia Business School
• Work as an economist at the American Enterprise Institute
• Publications on tax, trade, and economic policy
• Roles advising the presidential campaigns of John McCain, George W. Bush, and Mitt Romney
• Time spent working in the Fed’s research and statistics division earlier in his career

One of the biggest reasons he is seen as Trump’s top choice is his public support for rapid interest rate cuts, something Trump has repeatedly demanded from current chair Jerome Powell.

Hassett recently stated that, if he were in Powell’s position, he would be cutting rates immediately.

Why Hassett’s Potential Nomination Is Stirring Debate

Hassett’s close relationship with Trump has fueled concerns about the independence of the Federal Reserve, a principle considered vital for maintaining public confidence and economic stability.

Recent political clashes—such as efforts to dismiss Fed governor Lisa Cook and Trump’s criticism of Chair Powell—have heightened these worries. Critics argue that appointing a loyalist could increase political pressure on the central bank.

However, even if confirmed, Hassett would not have unchecked authority. Policy decisions are made by a 12-member Federal Open Market Committee (FOMC), which includes appointees from multiple administrations.

Economists note that whoever becomes chair will inherit difficult challenges: balancing a cooling job market against inflation that remains above the Fed’s 2% target.

What the Economic Impact Could Be

If appointed, analysts expect Hassett to support faster and earlier interest rate cuts, though not necessarily to the extremely low levels favored by Trump. Supporters argue that factors like deregulation and advancements in artificial intelligence could allow for lower rates without triggering runaway inflation.

Still, economists warn that overly aggressive cuts risk reigniting price pressures—something Americans are still sensitive to after the highest inflation in four decades.

Final Thoughts

Kevin Hassett’s expected nomination marks a pivotal moment for US economic policy. His experience, long-standing ties to Trump, and pro-cut stance on interest rates could significantly reshape the direction of the Federal Reserve in 2026 and beyond.

Whether he restores confidence or deepens concerns over political influence will depend on how he navigates the delicate balance between supporting job growth and keeping inflation in check.