White House economic adviser Kevin Hassett is emerging as a leading candidate to succeed Jerome Powell as Chair of the Federal Reserve, according to a report from the Wall Street Journal on Tuesday.
Hassett, a close confidant of President Trump on economic matters, is reportedly being favored over previous frontrunner Kevin Warsh, a former Federal Reserve governor, the Journal noted.
The report, citing sources familiar with the discussions, said Hassett met with Trump at least twice in June to discuss the Fed role.
This development comes amid growing expectations that Trump may accelerate his decision on naming a successor to Powell, whom he has harshly criticized for not lowering interest rates sooner. Trump originally appointed Powell in 2017.
Powell, whose term runs through May 2026, has often been the target of Trump’s personal criticism—especially for his cautious approach to rate cuts. Powell has consistently pointed to the inflationary risks posed by Trump’s aggressive trade tariff policies as a reason for restraint.
Trump’s repeated public attacks have also raised concerns about the Federal Reserve’s independence, particularly as speculation swirls around who might replace Powell when his term ends.
The Wall Street Journal also reported that Trump has, at times, floated the idea of nominating Treasury Secretary Scott Bessent for the Fed’s top job.
While the Federal Reserve cut interest rates by a total of 1% during 2024, it projected a much more gradual pace of easing in 2025, citing worries about a potential resurgence in inflation due to Trump’s tariff measures.
