Kevin Hassett, a 63-year-old economist who has been Trump’s chief economic adviser, has apparently emerged as the leading contender to be the new chair of the Federal Reserve. Hassett is perhaps best known, though, for his unyielding loyalty to former President Donald Trump. He has a deep background in economic policy, having been chair of the White House Council of Economic Advisers during Trump’s first term. Still, right now, the director of the National Economic Council is doing all he can to sell America on Trump’s Alternatively Great vision.
Hassett’s candidacy is timely as the U.S. economy shows increasing signs of weakness. He has been a vigorous defender of Trump’s economic policies, most recently blaming or downplaying data that points to increasing economic distress. In recent testimony, he has repeated verbatim Trump’s talking points regarding bias at the Bureau of Labor Statistics. In doing so, this has fostered skepticism about the importance or reliability of select economic indicators.
In a recent CNBC interview, Hassett responded to fears that the independence of the Federal Reserve is undermined by calling its independence “core.” He stated, “The way you’ve got to drive interest-rate movements is with consensus based on the facts and the data.” He knows, better than most, the tightrope walk that’s required in monetary policy. His determination to keep the Fed independent comes through in this statement.
Despite his close ties to Trump, Wall Street has reacted positively to Hassett’s relative distance from the White House, suggesting that his leadership could be viewed as stabilizing during uncertain economic times. Trump has made no secret of how confident he is in Hassett’s abilities. He responded that “I think the two Kevins are great,” when pressed by Sen. Hassett, and another possible candidate Christopher Waller.
While Hassett has emerged as a frontrunner in prediction markets, he recently experienced a brief setback when Waller overtook him in popularity before falling back to second place. Some within the Trump administration have questioned whether Hassett possesses the necessary skills to effectively lead the central bank, raising concerns about his readiness for such a significant role.
Hassett’s family ties bring a fascinating element to his candidacy. His father-in-law is billionaire businessman Ronald Lauder, a longtime donor and ally of Trump. This connection further deepens his ties to Trump’s political network. This relationship will likely color views on his possible appointment as well as the direction he could take at the Fed if appointed.
As the competition for the Fed chair position heats up, Kevin Hassett stands out due to his unwavering support of Trump’s economic agenda and his experience in high-profile economic roles. His ability to balance political loyalty with professional expertise will be essential. More importantly, it will likely decide whether he can win this powerful and influential position.