Donald Trump to pit Kevin Hassett against trio of Fed chair finalists
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Federal ReserveAdd to myFTGet instant alerts for this topicManage your delivery channels hereRemove from myFTDonald Trump to pit Kevin Hassett against trio of Fed chair finalistsFinal interviews for top central bank job to kick off this weekDonald Trump’s decision to carry on with additional interviews suggests that the selection of Kevin Hassett, left, as Fed chair is not guaranteed © 2025 Getty ImagesDonald Trump to pit Kevin Hassett against trio of Fed chair finalists on x (opens in a new window)Donald Trump to pit Kevin Hassett against trio of Fed chair finalists on facebook (opens in a new window)Donald Trump to pit Kevin Hassett against trio of Fed chair finalists on linkedin (opens in a new window)Donald Trump to pit Kevin Hassett against trio of Fed chair finalists on whatsapp (opens in a new window) Save Donald Trump to pit Kevin Hassett against trio of Fed chair finalists on x (opens in a new window)Donald Trump to pit Kevin Hassett against trio of Fed chair finalists on facebook (opens in a new window)Donald Trump to pit Kevin Hassett against trio of Fed chair finalists on linkedin (opens in a new window)Donald Trump to pit Kevin Hassett against trio of Fed chair finalists on whatsapp (opens in a new window) Save Claire Jones and James Politi in WashingtonPublishedDecember 9 2025Jump to comments sectionPrint this pageUnlock the White House Watch newsletter for freeYour guide to what Trump’s second term means for Washington, business and the worldDonald Trump will soon launch a final round of interviews for Federal Reserve chair, pitting White House economic adviser Kevin Hassett against a trio of other candidates to replace Jay Powell. The US president and Treasury secretary Scott Bessent are scheduled to meet former Fed governor Kevin Warsh on Wednesday, according to three senior administration officials. The officials said Hassett, the director of Trump’s National Economic Council, remains in pole position to succeed Powell as chair in May, despite concerns among some Wall Street investors that he is too close to the president and could cut interest rates too aggressively. But the decision to carry on with additional interviews shows that Hassett’s selection is not guaranteed. Officials have also raised the prospect of Hassett serving for a truncated term.Bessent presented a list of four names to the White House, according to the officials, with Hassett and Warsh among them. The other two would be selected from the list of other finalists, which includes Fed governors Christopher Waller and Michelle Bowman and BlackRock’s Rick Rieder. The president and Treasury secretary are expected to hold at least one interview next week, before announcing the final decision in early January. Susie Wiles, Trump’s chief of staff, could also attend the interviews. The president’s pick would need to be confirmed in the Senate. A White House spokesperson said: “Personnel decisions to be made by President Trump will be announced directly by President Trump himself. Any discussion until then is pointless speculation.” Hassett has emerged as a frontrunner in recent weeks. Should he move to the Fed, one possibility is for Bessent to take over his role at the NEC in the interim, while remaining at the Treasury, according to four people familiar with the matter.Administration officials have also discussed the possibility of Hassett serving a shortened term, according to the three people familiar with the matter. Hassett had already proposed to Bessent that he take Powell’s seat on the board of governors, which expires in January 2028, two people said. Powell has yet to decide whether or not he will step down as governor when his term as chair expires.Trump has frequently said that he would like to see Bessent as Fed chair, but the Treasury secretary has said he does not want the job. However, a shorter term for Hassett at the helm of the US central bank could allow Bessent to move to the Fed later in the president’s second term. Fed chairs serve renewable four-year terms, with few recent heads of the central bank serving less than that and several working successive stints. Hassett’s emergence as the frontrunner has spooked some bond investors, who told the Treasury that they fear he could cut rates indiscriminately — a move that they believe could destabilise the $30tn Treasury market if it results in persistently high inflation, the Financial Times reported last week. The NEC head has in recent days sought to emphasise the importance of central bank independence. Hassett said at a Wall Street Journal event on Tuesday that while he believed there was still room for more rate cuts, “the most important job” of heading the Fed was “to be looking at the economic data and to avoid being part of politics”.Hassett, who also worked for the Fed earlier in his career, served in two roles during the first Trump administration and has repeatedly advocated for the administration’s economic policies. The president has spent the past year attacking Powell for not lowering US borrowing costs much more rapidly.The Fed is widely expected to reduce borrowing costs by a quarter point on Wednesday — the third cut in a row. While such a move would reduce the federal funds target range to a three-year low of 3.5 to 3.75 per cent, Trump has called for US borrowing costs to fall to 1 per cent.Reuse this content (opens in new window) CommentsJump to comments sectionPromoted Content Follow the topics in this article Global Economy Add to myFT US economy Add to myFT US politics & policy Add to myFT US interest rates Add to myFT Federal Reserve Add to myFT Comments