Trump’s Reluctance Shakes Up the Fed Chair Race

President Donald Trump signaled fresh uncertainty over the future leadership of the Federal Reserve after expressing reluctance to nominate Kevin Hassett as the next central bank chair, a move that could significantly reshape the succession race.

Speaking Friday, Trump suggested that keeping Hassett in his current role as head of the White House National Economic Council may be more valuable to the administration than moving him to the Federal Reserve. He emphasized that Hassett has been one of the administration’s most influential and effective voices on economic policy, hinting that losing him from the White House could weaken its messaging at a critical time.


White House Priorities vs. Central Bank Succession

Hassett has long been viewed as a leading contender to replace current Fed Chair Jerome Powell, whose term is approaching its end. Trump’s remarks, however, cast doubt on whether Hassett will ultimately be tapped for the role, underscoring the tension between maintaining a strong in-house economic team and installing a trusted figure at the central bank.

By signaling that Hassett may stay put, Trump effectively altered expectations around the Fed chair search, which has already drawn intense political and market attention. The Federal Reserve’s independence, policy direction, and leadership style remain closely watched as the administration weighs its options.


A Clearer Path for Other Contenders

Trump’s hesitation could open the door for other candidates to gain momentum. Among those seen as benefiting from the shift is former Federal Reserve governor Kevin Warsh, who has previously been mentioned as a potential successor. With Hassett’s prospects now less certain, the field may narrow or reorganize more quickly than anticipated.


Markets Watch Closely

The evolving dynamics highlight how political considerations are increasingly intersecting with the traditionally technocratic process of selecting a Fed chair. Investors and policymakers alike are closely monitoring the signals coming from the White House, aware that the final decision will have lasting implications for monetary policy, market confidence, and the broader economic outlook.

For now, Trump’s comments suggest that the race for the Federal Reserve’s top job remains wide open—and far from settled.