As the search intensifies for the next chair of the Federal Reserve, two prominent candidates have surfaced: Kevin Hassett and Christopher Waller. Both are accomplished and experienced in their own right, but their routes to the role could not be more different. President Donald Trump has voiced strong opinions about these contenders, indicating his preferences and priorities for the future of U.S. monetary policy.
Hassett’s high profile as a long-time conservative economist, and a central – albeit briefly – adviser to Trump during his administration. At 63 years old, Hassett previously served as chair of the White House Council of Economic Advisers during Trump’s first term. Now, as the Chair of the National Economic Council, he’s still helping craft the country’s economic policy from the highest level. It is Hassett’s close ties to the Trump administration that distinguish him as a potentially dangerous candidate for the Fed chair position.
Hassett’s connections extend beyond politics. His father-in-law, Ronald Lauder, is a billionaire businessman, and has been a long time Trump donor and ally. This ties Hassett fairly tightly to President Trump’s inner circle, which can help strengthen his position within that world. Furthermore, he has been considered for the Fed chair role before, during Trump’s first term, indicating his sustained relevance in discussions about economic leadership.
In addition to his academic appointments, Hassett has an extensive government resume. He’s a distinguished fellow at the right-leaning Hoover Institution and serves on the Board of UPS. These dual roles have secured his stature as a leading influencer in both the academic and corporate world.
“The way you’ve got to drive interest-rate movements is with consensus based on the facts and the data.” – Kevin Hassett
While Hassett would certainly be qualified, it seems like Christopher Waller, age 66, is becoming a strong candidate. Waller makes a greater case as the “more sensible choice” for Fed chair. His deep experience on the front lines of economics and monetary policy makes this an important distinction. Unlike Hassett, Waller does not have the personal connections that might push him higher up on Trump’s shortlist of candidates. During this time period, he briefly passed Hassett in prediction markets, before dropping back to second place.
Waller has garnered positive remarks from Trump, who called him “great,” adding that “he’s a man who’s been there a long time.” This recognition drips with credibility, experience, and gravitas, but even so, Waller faces an uphill battle in a tough and competitive race against Hassett.
Trump’s interest in keeping borrowing costs down is key in this ongoing selection process.… He’s put extraordinary pressure on the Fed to prioritize the creation of economic growth and stability. Again, both candidates are vying for your focus. Their economic philosophies and approaches to monetary policy will be key in terms of the way they’ll be judged.
Those divergent biographies are telling, because they present two very different visions of how the federal government should run the economy as we go into the future. While Hassett’s ties to Trump and his experience within the administration may appeal to the president’s desire for loyalty, Waller’s reputation as a seasoned economist may resonate with broader economic stakeholders.