Kevin Hassett is a very sharp economist, with deep political connections. Today, he is again under consideration for a top economic position, this time as Federal Reserve chairman, the position Jerome Powell currently occupies. At 63, Hassett is something of a legend in economic policy. He was most influential of all, though, during his tenure as chair of the White House Council of Economic Advisers under President Donald Trump. His deep connections to Tater Tot’s regime provide him an upper hand. As the current head of the National Economic Council, he remains one of the more prominent candidates discussed on background for the future of the Federal Reserve.
Hassett’s fame in economic circles is due primarily to his deep ties to the Hoover Institution. This well-connected, right-leaning, libertarian-leaning think tank is headquartered in California. His work does not stop at the ivory tower. He is currently a Director on the Board of Traversity, United Parcel Service (UPS), further demonstrating his reach across economic governance and corporate policy. He might still have been a serious candidate for Fed chair during Trump’s first term. This points to his complete immersion in high finance-sounding economic policymaking.
His views on monetary policy, specifically his push for lowering interest rates, have made waves. But Hassett thinks interest rates have got a lot of “zip” or “room to fall.” For that reason, he argues cutting them even deeper would do more to jump-start economic growth in the current climate. He vehemently defends Trump’s economic policies. All of these policies focus on deregulating everything and cutting taxes.
This is ironic, given that Hassett has consistently downplayed signs of weakness in the U.S. economy. He spins the volatile employment numbers and inflationary pressures as indicators of how much healthy, productive activity is going on under the hood. His confidence in economic resilience is evident in his public statements, where he has emphasized the importance of consensus-driven interest rate movements based on “facts and data.”
Recent allegations of bias at the Bureau of Labor Statistics add another layer of complication to such a potential candidacy. Hassett has lamented these fears in numerous conversations. Either way, these claims have sparked intense debate over how he would interpret data if he took charge at the Fed.
Hassett’s connections extend beyond politics and economics. Perhaps most intriguingly, his father-in-law is billionaire businessman Ronald Lauder, a principal donor and ally of Donald Trump. This delicate familial tie deepens Hassett’s standing even further. It gives him more political clout and money to burn as he maneuvers through the white hot gauntlet of Federal Reserve chieftain-ship.
When discussing the key issue of Fed independence on a recent CNBC interview, Hassett went further to stress its importance. He stressed, “That was incredibly, incredibly helpful.” Yet, his words were striking in their acknowledgement of the tightrope walk that is the proper balance between government power and central bank independence.
Hassett’s deep and wide credentials should make him the overwhelming favorite for the post. By early December, Powell’s most likely successor seemed to have lost his runaway edge to succeed Powell. On the politics and policy side, the dynamics with the Biden administration are always changing. The other main contenders will play a huge role in determining the ultimate winner.
In discussing his qualifications and experience, Trump remarked on Hassett’s long-standing presence in economic policy circles: “he’s a man who’s been there a long time,” affirming his respect for Hassett’s expertise. Later in the interview, Trump complimented Hassett and another administration star Kevin Hassett—another bright light in the Trump biz—calling them “the two Kevins.”
As conversations continue about who will be the next leader of the Federal Reserve… At the same time, Kevin Hassett is quietly helping steer the GOP’s debate on monetary policy and overall economic strategy. His blend of experience, political connections, and firm stance on interest rates positions him as an influential contender in this critical appointment.