Overview
- Kevin Hassett, the White House National Economic Council chair, is widely reported as the leading candidate to succeed Jerome Powell, though no nomination has been made.
- CNBC reported that a senior administration official close to President Trump opposes installing Hassett as Fed chair, citing concerns he is too close to the president.
- In a CNBC interview, Hassett said the Federal Reserve’s independence is “very important” and that policy should be set on facts and indicators through FOMC agreement.
- Hassett argued there is substantial room for interest-rate cuts and said Trump is correct that supply-side effects from his policies could put downward pressure on inflation.
- Observers warn that appointing a close presidential ally could undermine Fed credibility and skew rate decisions, while other candidates such as former Fed governor Kevin Warsh remain under consideration and any nominee would require Senate confirmation.