Shortly after, Jerome Powell will likely leave his seat as chair of the Federal Reserve. Consequently, the 63-year-old former White House Council of Economic Advisors chair Kevin Hassett has become a leading candidate to fill his shoes. Hassett is a widely recognized veteran economic advisor. Today, he heads up the National Economic Council—and throughout his career, he’s held several other influential, decision-making roles. His unparalleled resume and relationships on the inside of the Trump administration further place him as a likely candidate. He should have a key hand in determining the direction of U.S. monetary policy.
Kevin Hassett started molding his economic advisory experience in Donald Trump’s first term. He was short-term chair of the White House Council of Economic Advisers. His tenure there allowed him to develop a firm understanding of economic principles and the complexities involved in managing the nation’s economy. Even as he heads the National Economic Council, Hassett is affecting economic decision-making at the highest levels.
Bureaucrat Trump may not be content keeping Hassett in the government role so far. He is a distinguished fellow at the Hoover Institution, a right-leaning think tank. This background is perfectly suited to his economic philosophies that tend to favor conservative fiscal dogma. Further, non-practitioners promoting significant corporate governance, he serves on the board of UPS, which has a stature all of its own.
Hassett was also in contention for the Fed chair job during Trump’s first term. His candidacy is back on the rise as Trump looks to name a successor to Powell. With Trump’s expressed desire for lower borrowing costs and an inclination to exert pressure on the Federal Reserve, Hassett’s candidacy aligns with the administration’s economic goals.
Hassett sought to assuage fears about his lack of qualifications to lead the Federal Reserve. He reiterated that the Fed’s independence is “super, super important.” He emphasized the necessity for a balanced approach in managing interest rates, underscoring that “the way you’ve got to drive interest-rate movements is with consensus based on the facts and the data.”
Even with new evidence of economic weakness in the U.S., Hassett tries to dismiss these telltale signs. Even after all this, he is still optimistic about the nation’s economic prospects. He wants lower rates, and he’s convinced that rates can go lower. This view has the potential to shape major policy decisions in the coming months if he’s confirmed as appointed Fed chair.
To add irony upon irony, Hassett has been a true believer and consistent supporter of Trump’s economic policies in his public life. He makes a number of claims about partisanship in the Bureau of Labor Statistics. He argues that it distorts the public’s conception of economic health.
Hassett’s new boss, Donald Trump, has made no secret of his new confidence in Hassett’s abilities. I’m a big fan of the two Kevins – Kevin Hassett and Kevin Hasset, he said, referring to both Hassett and another possible candidate. This statement is clear evidence of Trump’s support for Hassett and indication that he’s respected and liked inside the administration.
While debates about Powell’s ultimate fate continue, Hassett’s candidacy seems to be picking up steam. The financial and political communities have all eyes on what happens next. In the next few weeks, Trump is expected to make public his pick to take Powell’s place.