Trump Expresses Hesitation Over Appointing Hassett as Federal Reserve Chairman

Trump Hesitates on Nominating Hassett for Fed Chair

Photographer: Will Oliver/EPA/Bloomberg

President Donald Trump has signaled uncertainty about putting forward Kevin Hassett as the next Federal Reserve chair, further complicating the ongoing search for a new leader of the central bank.

On Friday, Trump remarked that losing Hassett as director of the White House National Economic Council would mean the administration would be without one of its most effective advocates for economic policy. Hassett has been widely regarded as a leading candidate to replace current Fed Chair Jerome Powell.

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“Honestly, I’d prefer you stay in your current role,” Trump told Hassett during a White House event. “If I move you, the current Fed officials—especially the one in charge—aren’t very communicative. Losing you would be a real issue for me.”

Following Trump’s comments, the dollar recovered from earlier declines and edged higher, while equity markets slipped into negative territory.

The president’s attempts to fill open positions at the Fed have already encountered resistance in the Senate, which must approve his nominees. Senator Thom Tillis, a prominent Republican on the Banking Committee, has pledged to block any nominations until a Justice Department investigation into the Fed is concluded. Other Republican senators have also voiced concerns about the inquiry.

The decision to subpoena the Fed has significantly intensified the administration’s dispute with the central bank over its policy choices. Jerome Powell criticized the investigation, calling it a thinly disguised effort by the White House to undermine the Fed’s independence. Administration officials, however, argue that the probe is necessary to ensure responsible management of taxpayer funds.

Trump did not address the ongoing controversy in his Friday remarks, but suggested that the selection process for the next Fed chair remains open. He has recently indicated that he expects to announce his choice within the coming weeks.

“We don’t want to lose him,” Trump said of Hassett. “We’ll see how things unfold.”

Although Hassett was considered the leading candidate for the position late last year, Trump has continued to evaluate other potential nominees.

In a recent interview with Reuters, Trump mentioned that both Hassett and former Fed Governor Kevin Warsh are under consideration, along with other candidates.

“Both Kevins are excellent,” Trump commented. “There are also several other strong contenders.”

Additional Developments

Rick Rieder, an executive at BlackRock Inc., was seen at the White House on Thursday. According to Fox Business, he interviewed for the Fed chair position with the president and senior officials.

Jerome Powell’s term as Fed chair is set to expire on May 15. The search for his successor is being overseen by Treasury Secretary Scott Bessent, who has reportedly withdrawn himself from consideration.

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