White House National Economic Council Director Hassett emerges as the top contender to succeed Powell, fully supporting Trump's economic agenda

According to sources familiar with the matter, Kevin Hassett, one of the longest-serving economic advisors during Trump's presidency, is currently the frontrunner to succeed Jerome Powell as Chairman of the Federal Reserve next year.

Hassett is currently the Director of the White House National Economic Council, and he and Kevin Warsh are the two main candidates to succeed the Federal Reserve Chairman. Media reports indicate that Treasury Secretary Janet Yellen is also involved in the selection process and providing advice, and if other candidates do not perform well, Yellen herself could be a contender for the position. Additionally, Federal Reserve Governor Christopher Waller is seen as a "dark horse" candidate.

Trump has repeatedly criticized Powell for keeping interest rates too high and has stated that he would choose a Federal Reserve Chairman who supports interest rate cuts, raising concerns in the market about the potential loss of independence for the Federal Reserve. Hassett has echoed Trump's criticisms of the Federal Reserve. In a media interview this month, he mentioned that the Federal Reserve is an independent institution, but he said that the Fed cut rates before last year's presidential election and then recently kept rates unchanged citing inflation risks from tariffs, which he believes warrants criticism from the President.

Hassett said:

"I think it makes people feel like they are no longer neutral and no longer independent."

Media reports indicate that Hassett was once considered a moderate, right-leaning economist, aligned with establishment Republican politicians like Romney, but for the past decade, he has been within Trump's circle. His approach as Director of the White House National Economic Council is very different from that of his predecessor Gary Cohn, who attempted to restrain Trump's impulses on tariffs but did not last long in the role.

In contrast, Hassett has fully aligned himself with Trump, actively supporting Trump's views on trade, taxes, inflation, and the Federal Reserve, frequently appearing on television to express his opinions.

Stephen Myrow, head of the Washington think tank Beacon Policy Advisers, told the media that this is precisely why those who can survive long in Trump's circle do so.

"Anyone who can stay under Trump for this long is not coming with their own academic ideas to promote. They are not here to promote a particular school of monetary policy; they are here to serve Trump."

However, the media notes that this "service" mentality remains to be seen in how it will be applied to the role of the next Federal Reserve Chairman, as this position is supposed to be insulated from the priorities of the executive branch.

Hassett has expressed internally and externally that he is very eager to obtain the position of Federal Reserve Chairman, although he has been somewhat vague in television interviews. Hassett previously served as Chairman of the White House Council of Economic Advisers during Trump's first term. He has also worked as an economist at the Federal Reserve and as a research director at the American Enterprise Institute (AEI).

Hassett is known as an expert on tax issues and has published many articles in this field. However, he is most famous for his book "Dow 36,000," which predicted a significant rise in the U.S. stock market; this book was published before the dot-com bubble burst, and it ultimately took the Dow over twenty years to reach that predicted level