White House economic advisor Kevin Hassett’s prospects for becoming the next Federal Reserve chair are uncertain, as President Donald Trump has indicated he may prefer Hassett to remain in his current role. Hassett addressed the situation on Fox News, stating that discussions with Trump have revolved around whether his expertise is better suited to the West Wing or the Fed. He clarified that the President has not made a final decision.
Trump expressed reluctance last week about nominating Hassett to succeed current Fed Chair Jerome Powell, stating a preference to keep him in his existing position. The remarks have shifted the landscape of potential candidates for the role. Hassett was previously considered a frontrunner alongside Fed Governor Christopher Waller, former governor Kevin Warsh, and BlackRock Inc. executive Rick Rieder. BlackRock Inc. is a global investment management corporation providing a range of investment and risk management services.
The field is now considered a four-man race, with Rieder’s candidacy gaining momentum due to perceptions that he may be better positioned to secure US Senate confirmation. This comes amidst scrutiny surrounding the Federal Reserve.
A criminal probe targeting the Federal Reserve and Powell over headquarters remodeling has introduced further complications. Powell has accused the Justice Department of initiating the investigation to pressure the central bank into lowering interest rates. Lawmakers, including Senator Thom Tillis, have cautioned that Trump’s nominees will face increased scrutiny.
