Among outsiders, former chair of the Council of Economic Advisers Kevin Hassett has become a top name. His goal is to replace Jerome Powell as the next Chair of the Federal Reserve. At 63 years young, Hassett has an impressive track record when it comes to economic advisory roles. He’s been a strong advocate for all of former President Donald Trump’s economic priorities during his career.
Hassett’s career includes serving as the chair of the White House Council of Economic Advisers during Trump’s first term, where he played a critical role in shaping the administration’s economic policies. Most recently, he has been serving as director of the National Economic Council, where he has persisted in pushing for policies that further Trump’s anti-globalist, protectionist economic vision. His long time ties to the most fiscally conservative elements of economic thought make him a natural contender for the Fed’s top post.
In recent appearances, Hassett has sought to minimize any number of signs pointing toward possible fragility in the U.S. economy. He has previously peddled skepticism about data published by the Bureau of Labor Statistics, joining in on an attack that stinks of bias. This view is consistent with his record of staunchly defending Trump-era economic policies from attack.
In the course of a CBC interview, Hassett even tried to reassure nervous Americans about the autonomy of the Fed from government political meddling and the need to maintain the Fed’s independence, which he said was “really, really important.” He feels strongly that interest rate decisions must be data based and consensus driven. If true, this would have monumental implications for the future of U.S. monetary policy.
“The way you’ve got to drive interest-rate movements is with consensus based on the facts and the data.” – Kevin Hassett
This month, prediction markets have been all over the place. During one week, Hassett briefly edged past Christopher Waller in favorability, but he soon resumed his place in second place. Nonetheless, Hassett remains a big favorite among Wall Street traders. The Washington insiders treat that speculation with a straight face, considering Hassett the smartest candidate so far to lead the Federal Reserve. His odds have dropped since early December, but he still has a solid lead as the favorite in conversations about Powell’s likely successors.
In fact, Donald Trump at the time publicly endorsed Hassett. I think the two Kevins are excellent.” Waller is indeed laudable. Both Hassett and Waller are the two Kevins. With this former president’s endorsement, Hassett is bolstered in his standing among Republican circles. It’s a testament to his enormous influence over the country’s economic policy.
Hassett’s experience and commitment to conservative economic principles make him a formidable candidate for the role of Federal Reserve Chair. Public discourse on monetary policy is changing fast. So, too, will his views on interest rates and economic data be important for shaping the eventual choices.