Kevin Hassett Emerges as Frontrunner for Fed Chair as Trump Eyes Early Decision
Kevin Hassett, Director of the National Economic Council, has emerged as the leading contender to succeed Jerome Powell as Chair of the Federal Reserve. According to reports, Trump administration advisers view Hassett’s alignment with the White House’s economic philosophy—especially his preference for lower interest rates—as a key factor propelling him to the top of the shortlist.
With Powell’s term ending in May 2026, the selection process appears to be accelerating. Treasury Secretary Scott Bessent has indicated that there is a strong possibility a decision could be announced before Christmas. Supporters of Hassett’s potential appointment believe his leadership would usher in a new direction in U.S. monetary policy, favouring pro-growth measures and earlier rate cuts.
Hassett’s background and economic policy leanings
Hassett has a long history in conservative policy circles and U.S. economic governance. Before his current role, he served as Chair of the Council of Economic Advisers from 2017 to 2019 and has an extensive background as an academic economist and policy adviser. His public statements suggest he would pursue a more accommodative monetary stance, arguing that current economic data supports earlier rate cuts.
His prior involvement in executive economic policy gives him deep familiarity with the administration’s priorities, which analysts believe makes him a particularly attractive candidate for Trump. Observers note that his close relationship with the White House distinguishes him from more traditional central bank candidates.
Potential consequences: market reaction, rate expectations and political risk
If appointed, Hassett is widely expected to steer the Federal Reserve toward a looser monetary policy regime. Market analysts predict that such a shift could boost risk assets, including equities and digital assets, due to lower expected interest rates. This view aligns with recent narratives suggesting that easier monetary policy could serve as a tailwind for crypto markets.
However, critics warn that appointing a figure closely aligned with the administration may raise concerns about the Federal Reserve’s independence. Increased perceptions of political influence over monetary policy could introduce volatility into bond markets, raise inflation expectations and fragileen confidence in the central bank’s long-term credibility.
There are also broader global implications. Changes in U.S. monetary policy affect global capital flows, platform rates and economic stability in emerging markets. A pivot to rapid rate cuts under Hassett could lead to increased volatility across global financial markets, particularly in sectors sensitive to interest-rate movements.
Despite the strong momentum behind Hassett’s candidacy, the decision remains ultimately with President Trump. Multiple candidates reportedly remain under consideration, and regulatory and political checks must still be accounted for. As markets continue to assess the odds, the prospect of a new era in U.S. monetary policy is shaping expectations across the financial landscape.
