Kevin Hassett is the recently departed president of the American Enterprise Institute and former chief economic adviser to President Trump. Now, he is rising as a front-runner to succeed Jerome Powell as the head of the Federal Reserve. At 63 years old, Hassett has quite the track record of being a mainstay in economic policy. First, let’s dispense with the idea that Mr.
Hassett is no stranger to the Trump administration, having served as chief White House Council of Economic Advisers during the first Trump term. During his time there, he left an indelible mark on economic policy. As the head of National Economic Council right now, he has doubled down on his influence in matters economic.
Even when data have shown clear weakness in the U.S. economy, Hassett has repeatedly worked to undermine bad data while keeping a sunny face. To his credit, Davidson has long expressed concerns that there are biases at the Bureau of Labor Statistics. This is a testament to his fierce devotion to transparency and truth in economic reporting.
While we’re at it, in a recent CNBC interview, Hassett got right to the blazing heart of the current craziness about Federal Reserve independence. He mentioned it was “really, really important” for the institution’s credibility and effectiveness. This commitment to independence is in line with values of a growing number of economists concerned about political interference with the conduct of monetary policy.
Hassett wanted to make sure that people understood that interest rates can go down. This perspective gained a lot of traction as financial markets reacted to the unknowns of an economic crash. Wall Street traders are betting on him becoming the most likely nominee for the job. His odds of getting the job have diminished substantially since early December.
“The way you’ve got to drive interest-rate movements is with consensus based on the facts and the data.” – Kevin Hassett
Hassett’s extensive experience and steadfast loyalty to Trump’s economic agenda make him a prominent figure in discussions surrounding the future leadership of the Federal Reserve.
Former President Trump has expressed his support for Hassett, noting, “I think the two Kevins are great,” highlighting Hassett’s reputation within conservative circles.
As the Biden administration continues to manage economic challenges, including inflation and labor market fluctuations, the selection of a new Fed chair will play a critical role in shaping fiscal policy. Perhaps that’s because this decision will impact Wall Street directly. It will have real-world implications for everyday Americans by raising interest rates and dampening our economic recovery.