Kevin Hassett is a long-time conservative economist, and a prominent adviser to former President Donald Trump. He has become the name-to-beat among those who want to replace Jerome Powell as chairman of the Federal Reserve. Hassett is now the chair of the National Economic Council. Before that, he was chair of the White House Council of Economic Advisers during Trump’s first term, from which role he rose to prominence by defending and promoting Trump’s economic agenda.
Now 63, Hassett has been one of the biggest public defenders of the economic strategies pursued under Trump’s administration. His public statements often reflect a commitment to these policies, even as he navigates potential criticism regarding the current state of the U.S. economy. Analysts have taken note of his tendency to downplay data indicating economic weaknesses, as well as his assertions of bias within the Bureau of Labor Statistics.
As chair of the National Economic Council, Hassett directs the investment of more than $2.4 trillion in public assets. This new responsibility further underscores his profound sway in guiding economic policy-making. This new, albeit indirect, connection to Trump has raised alarm bells with experts. They are asking whether he would exercise the independence of judgment required of a Federal Reserve chairman.
Hassett’s odds in betting markets have jumped up, especially after a recent public show of support from Trump. In a public appearance, Trump stated, “I actually want to keep you where you are,” hinting at his support for Hassett to continue in his current capacity rather than ascend to the Fed chairmanship. This uncertain backing from Trump might have played a role in Hassett’s lack of stature compared to other possible contenders.
Despite this uncertainty, Hassett has expressed firm beliefs about the Federal Reserve’s independence, stating, “I think that the Fed’s independence is really, really important.” He has indicated that he sees room for interest rates to drop further, an assertion that aligns with Trump’s own views: “He thinks you have to lower interest rates,” said Trump during a recent discussion regarding economic strategies.
Luckily Hassett’s long background in economic policy provides him with a almost unique advantage. His strong connections with Trump make him a leading contender in the crowded race for the chair of the Federal Reserve. His nomination still needs Senate confirmation. Analysts—and the market—will be watching intently to see if he can walk the line between political influence and independence that is the hallmark of any Federal Reserve.
Debates over what the future of U.S. monetary policy should look like have been gaining momentum. Kevin Hassett, who is influential behind the scenes, helps steer the direction of economic governance. His history of supporting Trump’s policies combined with his current leadership role positions him as a key player in upcoming decisions that will impact both domestic and international financial landscapes.