Who is Kevin Hassett? Trump's top choice to replace Fed Chair Jerome Powell

Kevin Hassett, the electric current theatre director of the National Economic Council (NEC) under President Donald Trump, has emerged as the leading contender to become the next chair of the Federal Reserve.

A Bloomberg report from November 25 said that, while the final decision has yet to be made, Hassett's name appears to be gaining momentum ahead of the term expiration of current Fed Chair Jerome Powell in May 2026.

Read more: US Fed Meeting 2025: When and where to watch Powell-led FOMC press conference?

Kevin Hassett is an economist by training. He holds a PhD from the University of Pennsylvania and earlier taught at institutions such as the American Enterprise Institute.

He served as chair of the Council of Economic Advisers from 2017 to 2019 under Trump and then returned to serve as NEC director in 2025. Hassett is known for his support of pro-growth tax cuts, looser regulatory policies and criticism of inflationary pressure. Hence, he is in the running for the Fed Chair role as he aligns closely with Trump's economic agenda.

Hassett has publicly argued for a more accommodating monetary policy and has been critical of Powell's rate-hiking path. He also emphasised the importance of Trump's data-driven economic agenda, saying the Fed should support growth and the administration's objective, an August 2025 Bloomberg report said.

Hasset “backs ‘mission creep’ criticism,” questioning whether the current Fed has been as independent or transparent as it should be, according to another Bloomberg report. He says, “The question is, has the current central bank been as independent … as transparent … as we would like?”

A special CNBC Fed survey found that while Hassett is likely to be Trump’s pick, “long-term economic stability” is a concern among economists. CNBC quotes Allen Sinai of Decision Economics, who said, “The politics of low interest rates for political reasons … is a macro risk … if it is seen in markets as a takeover by the administration.”

The Washington Post's July 2025 report notes that “Hassett's Trump-era makeover” has been a cause of worry among the Fed watchers. The Post article says that if appointed, Hassett's close relationship with Trump and his support for rate cuts could compromise the Fed's ability to raise rates to fight inflation.

A Business Insider report warns that political interference could erode the Fed's ability to make tough decisions.

Chicago Fed President Austan Goolsbee, in an interview with CNBC, said such interference “would mean worse inflation and higher unemployment.”

Read more: Scott Bessent to give Trump Federal Reserve Chair options in December

Hassett is among three finalists, alongside former Fed governor Kevin Warsh and sitting governor Christopher Waller.

Trump publicly acknowledged earlier this year that this trio remains in contention, while Treasury Secretary Scott Bessent has opted out of consideration.

According to Bloomberg, Warsh is seen as more hawkish on inflation, while Waller has trended toward employment-focused policy. Hassett appears to bank on growth and rate cuts, aligning with Trump’s stated goals.

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