Trump "designates": supports Chief Economic Advisor Hassett to be the Chairman of the Federal Reserve

U.S. President Trump "designates" possible candidates for Federal Reserve Chairman: his chief economic advisor Kevin Hassett.

On Friday, the 5th, Eastern Time, Trump revealed to several reporters in the Oval Office that the candidate list for the Federal Reserve Chairman has been narrowed down to three, possibly four people, with Hassett, currently the Director of the National Economic Council (NEC), being one of them.

Trump stated on Friday that he supports Hassett to succeed Powell as the Federal Reserve Chairman. This is a rare instance where Trump directly names who might be the next Federal Reserve Chairman and explicitly expresses support for this person.

Earlier on Friday, after the unexpectedly weak August non-farm payroll report was released, Hassett told reporters that the mainstream expectation in the market is that the Federal Reserve will cut interest rates by 25 basis points in September. He speculated that the market might discuss a larger rate cut, but he expected the cut would not be larger.

Hassett anticipated that it might take another year to see more optimistic U.S. economic data. He downplayed the impact of this employment report, stating that the employment data is "a bit disappointing," "but I basically expect it to be revised upward."

Powell's term does not end until next year, specifically May 2026, but as the Federal Reserve has ignored Trump's calls for rate cuts this year, Trump has repeatedly expressed dissatisfaction publicly and has threatened to fire Powell. Last month, he set a precedent by directly announcing the dismissal of a Federal Reserve governor. Who will succeed Powell and whether the Federal Reserve's leadership next year will truly follow Trump's threats has become a hot topic of discussion.

Candidates for Federal Reserve Chairman reportedly considered 11 people at one point

In recent months, rumors about Powell's "successor" have been rampant. Nearly two months ago, an article from Wall Street Insight mentioned that Hassett and Kevin Warsh are both strong candidates for Federal Reserve Chairman. Trump stated on July 16 that he was considering appointing Hassett to succeed Powell.

A month ago, Trump mentioned Hassett again. He said he had narrowed down the potential future Federal Reserve Chairman candidates to four, excluding U.S. Treasury Secretary Mnuchin, including two Kevins—Kevin Warsh and Kevin Hassett.

However, just a few days later, media reports indicated that Trump had added several candidates for Federal Reserve Chairman, expanding the candidate list to about 10 people, including one of the popular candidates, former St. Louis Fed President James Bullard, who was Hassett's former boss, and Marc Sumerlin, who served as an economic advisor during former President George W. Bush's term.

Subsequently, media reports stated that the Trump administration was considering including Federal Reserve Governor Bowman, Federal Reserve Vice Chairman Jefferson, and Dallas Fed President Logan in the candidate list.

A few days later, conflicting messages emerged from the Trump administration. On August 13, Trump said that he wanted to announce the new Federal Reserve Chairman candidate a bit earlier, and the candidate list "has been narrowed down to three or four names." However, Bessent stated on the same day that it plans to consider up to 11 candidates.

Hassett Stands Firm in Trump's Circle for a Decade

Hassett is one of the longest-serving economic advisors during Trump's administration. Media reports indicate that Hassett was once considered a moderate right-wing economist, closely aligned with establishment Republican politicians like Romney, but he has been in Trump's circle for the past decade.

Hassett's predecessor, former NEC Chairman Gary Cohn, attempted to restrain Trump's impulses on tariffs but was unable to last long. Hassett, on the other hand, 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. This is seen as the reason why Hassett has been able to remain firmly in Trump's circle for so long.

However, whether Hassett's "service" mentality will apply to the position of Federal Reserve Chairman remains to be seen, as this role 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 public television interviews