As discussions surrounding the next chair of the Federal Reserve intensify, two prominent figures have emerged as frontrunners: Kevin Hassett and Christopher Waller. Either candidate would bring decades of experience and very different visions to the position. The case presents a consequential decision—possibly the most important decision ever for the future of U.S. economic policy.
Kevin Hassett, 63, previously chaired the White House Council of Economic Advisers during Donald Trump’s first term. Today, he serves as chair of the National Economic Council. His entire career he has stood at the front of the line praising and applauding Trump’s economic policies. Even under threat of dire economic consequence, he has fought passionately to protect them. Just last week, in a continuation of this trend, Hassett played down data that indicated fragility in the U.S. economy, defending the Administration’s rosy projections.
On the record, Hassett has raised a great deal of alarm about actual or perceived biases in our governmental economic establishments. He takes particular aim at the Bureau of Labor Statistics. For the last point, he drove home how important the Federal Reserve’s independence is. He said, “If you want to really drive interest-rate movements, you need the kind of consensus based on facts and data. This statement is a reflection of his belief in a fact-based approach to economic policymaking.
Beyond his resume, Hassett has some family connections that could help boost his credentials. His father-in-law, Ronald Lauder, has been one of Trump’s most loyal donors and allies for years. This relationship might boost his candidacy even further, given Trump’s outsized impact over the nomination process.
The profile of Christopher Waller, 66—one of the Fed’s recently appointed governors—could hardly be more different. Waller’s other notable roles include being a regular fellow at the right-leaning Hoover Institution as well as a board member for UPS. His roles have endeared him to the economic establishment. He was considered for the Fed chair position during Trump’s first term and received endorsement from Trump himself, who referred to Waller as “a man who’s been there a long time.”
Skyler Weinand, chief investment officer at Regan Capital, noted that Waller’s nomination is the more reasonable choice. Some view him as the stronger candidate of the two. His deep expertise in economics and stellar reputation could attract the kind of people looking for a moderate hand on the monetary policy lever.
The original version of this article ran on the Brookings Institution’s website. He was clear that the interest rates have not hit bottom yet. This dovetails with market expectations for a more dovish monetary policy. This view may find sympathy among industries supporting reduced borrowing costs to jumpstart economic activity.
As both candidates vie for consideration, their differing approaches highlight the broader debate regarding U.S. economic policy and the role of the Federal Reserve. The result will have major consequences on how monetary policy is formulated going forward to today’s economic realities.