As a result, he has also became the favorite to succeed Jerome Powell as Chair of the Federal Reserve. At 63 years, Hassett is one of the longest-serving members of the Trump administration. He was the chair of the White House Council of Economic Advisers during Trump’s first term. Today, he’s running the National Economic Council, where he’s all but guaranteed to keep shaping economic policy.
Hassett’s close ties to Donald Trump and his unwavering support for the former president’s economic strategies have positioned him as a loyalist within the Republican Party. He similarly strongly defends Trump’s economic policies. When faced with data that indicates clear signs of weakness in the U.S. economy, he often goes to great lengths to downplay it. His approach has been the subject of rave reviews by economists and analysts. What has them in a fit is his attacks on the Bureau of Labor Statistics, which he asserts is biased in its reporting.
In a recent interview with CNBC, Hassett specifically defended the independence of the czar of monetary policy, calling it “an absolutely vital part of our system.” He stated that “the Fed’s independence was really, really important” in maintaining economic stability and confidence in U.S. monetary policy.
Hassett’s views on interest rates are indicative of his overall optimism on the current state of the economy. He thinks there’s still distance for rates to head down, which may drive quantitative easing plans in the years to come. His perspective on interest rates aligns with the outlook of many Wall Street traders. Nonetheless, they continue to identify him as the frontrunner to become the next Fed chair, despite his odds of winning that post plummeting since early December.
Donald Trump has already publicly endorsed Hassett for the role. To which he replied, “I think the two Kevins are terrific,” by which he meant both Hassett and another contender, Kevin Warsh. This endorsement may bolster Hassett’s chances as he vies for one of the most influential economic positions in the country.
The Federal Reserve is at an important crossroads in its strategy for monetary policy. In the meantime, Hassett’s candidacy sparks the kind of discussions we need to have about the future of U.S. economic policy. His time at the National Economic Council augments such credibility. Furthermore, his time spent at the White House Council of Economic Advisers (CETA) makes him a favorite among free market conservatives looking to spoil liberal economic thoughts.
Yet his past statements and deeds are coming under greater scrutiny. What happens to his candidacy remains to be seen as more serious challengers come onto the scene and Democrats open up their own nominating process. The Federal Reserve’s decision-making process will undoubtedly be influenced by political considerations, and Hassett’s relationship with Trump could play a pivotal role in his potential appointment.