Economic advisor to the US President Kevin Hassett has emerged as the leading candidate for the position of the Federal Reserve Chairman, Bloomberg reported. Sources describe him as a close ally of Donald Trump, enjoying the president's high level of trust. Hassett shares the president's views on the economy, particularly advocating for more aggressive rate cuts. Recently, he stated directly that interest rates should be lowered, citing fresh macroeconomic data.
Trump has repeatedly criticized current Fed Chairman Jerome Powell for being slow to ease monetary policy. Following the central bank’s decision in July to maintain the funds rate at 4.25-4.50%, the president publicly labeled Powell a failure and called for his dismissal. Powell's term ends in May 2026, and Trump aims to appoint a successor well in advance.
Treasury Secretary Scott Bessent confirmed that the president would likely announce his decision before the Christmas holidays. Although Kevin Hassett is considered the favorite, sources caution about the unpredictability of Trump's personnel decisions, as he has previously mentioned four potential candidates for the position.
