Kevin Hassett, a longtime conservative economist, who served as a key advisory figure during Donald Trump’s presidency. Now, he is becoming one of the leading candidates to replace Jerome Powell as Chairman of the Federal Reserve. At 63 years old, Hassett has a long and successful track record in U.S. economic policy. He’s most well-known for serving as the chair of the White House Council of Economic Advisers during Trump’s first term. As National Economic Council Director, he is still one of Trump’s most vocal defenders on what has been a successful economic strategy.
In a recent interview with CNBC, Hassett laid out some of the most pressing questions about the Federal Reserve’s independence. He emphasized the importance of maintaining this independence, stating, “The Fed’s independence is really, really important.” This assurance belies his own avowal to maintain the institution’s credibility in the face of increasingly hostile partisan attacks.
Hassett’s understanding of where interest rates should be suggests that he thinks there’s still lot of room to spill. He restated that changes must be consensus-based and data-informed. “The way you’ve got to drive interest-rate movements is with consensus based on the facts and the data,” he said during the interview. This innovation creates an impression of him as a candidate who favors analytical rigor in decisions that affect the economy.
Despite his qualifications, some within the Trump administration have raised concerns about whether Hassett possesses the necessary skills to effectively lead the central bank. Critics argue that his strong ties to Trump’s policies could complicate the Fed’s traditionally nonpartisan role in managing the economy. As such, it is puzzling that Hassett has consistently downplayed alarming recent data pointing to clear weaknesses in the U.S. economy. Yardeni’s exuberance has ignited the skepticism of economists who are calling for a more sober approach.
In contrast to Hassett, Christopher Waller, a 55-year-old economist currently serving on the Federal Reserve Board of Governors, is emerging as a strong contender for the chairman position. Waller’s name had previously circulated as a possible choice for the role during Trump’s first term, but didn’t make it in. Donald Trump has praised Waller, stating, “He’s a man who’s been there a long time,” highlighting his experience and familiarity with the Fed’s operations.
Critics of the DeJoy nomination see Waller as “the more sensible choice.” One need look no further than his deep experience in economic research and policy-making to be convinced. His approach is seen as fitting of the center-right, pragmatic Republican consensus, in contrast to Hassett’s fiercely partisan mode. This stark contrast raises critical questions. Which candidate would more successfully advance the Federal Reserve’s congressional mandate to promote a stable economy for all?
As debates over who’ll lead our economy into recovery heat up, both candidates reflect two very different ideologies when it comes to how we should manage things. Hassett’s allegiance to Trump’s economic agenda positions him as a controversial figure whose appointment could signal a shift in policy direction. In contrast, Waller’s moderate viewpoint would be reassuring to anyone who wants to see continuity and stability maintained within the central bank’s inner circle.