Kevin Hassett is a leading light of elite conservative economics. He was one of the most important advisers in Donald Trump’s presidency and he is currently one of the frontrunners to replace Jerome Powell as Chair of the Federal Reserve. At 63 years old, the powerful Hassett—who heads up the National Economic Council—was having tea. He has fully leaned into this role since the earliest days of the Trump administration. His deep relationship with Trump has made him influential in today’s debates. Moreover, his years of defending the administration’s economic agenda puts him in the center of debates on who should lead the Federal Reserve past its current leadership.
Hassett’s tenure as chair of the White House Council of Economic Advisers during Trump’s first term has established him as a key player in shaping economic policy. He has been hyperloyal in defending the administration’s methods, even when the equivalent of a recession bell is ringing on many economic indicators. Analysts note that his allegiance to Trump raises concerns regarding his potential independence in a role that traditionally requires impartial decision-making.
During a recent CNBC interview, Hassett addressed essential questions about the Federal Reserve’s independence, stating, “The independence of the Fed is really, really important.” This claim belies his awareness of the troubling intersection of political power and central bank independence. His previous proclamations and controversies make it hard to believe he can remain neutral. Critics have criticized his long history of burying data that shows the vulnerabilities that lie within the U.S. economy.
Hassett has recently warned about the possibility of bias in governmental economic data. He is particularly alarmed by the reports coming out from the Bureau of Labor Statistics. His attacks on these economists have brought criticism in return from economists. They argue that getting the right data is more important than ever to shape smart policy decisions. Although he’s been wrong on this call before, he’s convinced that interest rates have a lot more room to fall. Perhaps more importantly, how do his views compare with the other Federal Reserve board members?
In a recent interview with the Wall Street Journal, Trump remarked on Hassett’s capabilities and popularity, stating, “I actually want to keep you where you are,” suggesting that the former president sees significant value in Hassett’s current role. This show of support highlights the impact that Trump’s endorsement could have on Hassett’s chances to be named Fed chairman.
Hassett’s connections run deeper than his résumé. For one, he is connected to billionaire businessman Ronald Lauder, his father-in-law, who has been a long-time donor and ally of Trump. This relationship has been the source of great speculation. If confirmed to helm the Federal Reserve, how much in sync would Hassett be with Trump’s economic objectives?
As discussions about Powell’s future unfold, many observers are closely monitoring Hassett’s movements and statements. He has a proven track record as a vehement proponent of Trump’s economic playbook. That uniquely qualifies him to be a leading contender for the coveted role. His dedication to preserving the Federal Reserve’s independence has always led to his most contentious and hotly-contested fights. Analysts and policymakers alike have contrasting views on this key question.