Trump Signals Hesitation Over Kevin Hassett as Next Federal Reserve Chair

 

Trump Signals Hesitation Over Kevin Hassett as Next Federal Reserve Chair

President Donald Trump has publicly expressed reservations about nominating Kevin Hassett as the next chair of the Federal Reserve, adding fresh uncertainty to an already sensitive leadership search at the U.S. central bank.

Speaking during a White House event on Friday, Trump suggested that moving Hassett from his current position as director of the National Economic Council could weaken the administration’s ability to communicate its economic message. Hassett has been widely viewed as a leading candidate to replace current Fed Chair Jerome Powell, whose term ends in mid-May.

Trump emphasized that Hassett plays a central role in shaping and explaining the administration’s economic agenda, hinting that such influence could be lost if he were appointed to the Fed. The president contrasted Hassett’s public engagement with what he described as the limited communication style of current Federal Reserve leadership.

Financial markets reacted swiftly to the remarks. The U.S. dollar recovered from earlier losses to trade slightly higher, while equity markets turned negative, reflecting investor sensitivity to signals about future monetary policy leadership.

The nomination process faces additional political complications. Any Fed chair nominee must be confirmed by the Senate, where resistance has already emerged. Senator Thom Tillis, a Republican member of the Senate Banking Committee, has pledged to block confirmations tied to the Federal Reserve until an ongoing Justice Department investigation into the institution is resolved. Other Republican lawmakers have also raised concerns about the inquiry.

The investigation itself has intensified tensions between the White House and the Federal Reserve. Jerome Powell has warned that such actions risk undermining the central bank’s independence, while administration officials argue the probe is necessary to ensure accountability in the use of public funds.

Despite the controversy, Trump indicated that no final decision has been made. He has said an announcement on his choice for Fed chair could come within weeks. While Hassett remains under consideration, Trump has also mentioned former Federal Reserve Governor Kevin Warsh as a potential candidate, along with other figures from the financial sector.

Hassett was previously seen as a frontrunner for the role late last year, but the president’s latest remarks suggest the field remains open as the administration weighs political realities, market reactions, and internal priorities.

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