President Donald Trump is showing hesitation about appointing his top economic adviser, Kevin Hassett, as the next chair of the Federal Reserve, adding a new twist to an already tense race to replace Jerome Powell.
Speaking at a White House event on Friday, Trump praised Hassett’s work defending the administration’s economic agenda but suggested he may not want to lose him from his current role.
“I actually want to keep you where you are,” Trump said, adding that he worries about losing a close adviser if Hassett moves to the Fed.
Hassett, who leads the White House National Economic Council, has been seen as a front-runner to replace Powell when the Fed chair’s term ends in May. But the selection process has become highly politicized after the Justice Department launched a criminal investigation into Powell related to the Federal Reserve’s $2.5 billion headquarters renovation.
Powell investigation shakes the race
The investigation triggered rare backlash across Washington. Powell accused the Trump administration of using legal pressure to influence interest rate policy. Lawmakers from both parties, former Fed chairs, global central bankers, and Wall Street leaders quickly came to Powell’s defense.
Republican Senator Thom Tillis, a key member of the Senate Banking Committee, said he will block any Fed nominee until the legal matter is resolved. That stance could seriously delay or derail Trump’s choice.
Besides Hassett, Trump is also considering Kevin Warsh, a former Fed governor, and Christopher Waller, a current Fed governor.
Hassett defends independence but backs Trump agenda
Hassett has become one of Trump’s most visible economic spokesmen, frequently appearing on television to promote administration policies on trade, immigration, and growth. While once known for traditional conservative views, he has increasingly aligned with Trump’s economic strategy.
On Fox Business, Hassett said the White House respects the Fed’s independence and predicted the US economy could have “one of the best years we’ve ever seen.” He also said he would support transparency at the central bank and insisted he would protect Fed independence if appointed.
“If it were to be me, I would take the job with a commitment to independence and transparency,” Hassett said.
Politics complicate the Fed transition
Trump wants significantly lower interest rates and has repeatedly criticized Powell for not cutting fast enough. That pressure, combined with the investigation and Senate resistance, has made the Fed succession one of the most sensitive financial appointments of Trump’s second term.
With Powell’s term ending in May and Senate confirmation uncertain, the race to lead the world’s most powerful central bank is now deeply entangled with politics, legal battles, and market confidence.
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