Kevin Hassett Emerges as Top Contender for Next US Federal Reserve Chair

Advanced | July 16, 2025

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A New Face for the Federal Reserve?

Hassett Gains Traction with Trump

Kevin Hassett, currently the Director of the National Economic Council, is gaining significant traction as a leading Federal Reserve Chair candidate 2025. Reports on July 9, 2025, confirmed that Hassett has met with President Donald Trump at least twice in June 2025 to discuss this pivotal role, signaling a serious consideration for the conservative economist.

Dissatisfaction with Current Fed Leadership

President Trump’s interest in Hassett stems from his ongoing dissatisfaction with the current Fed Chair, Jerome Powell. Trump has openly criticized Powell’s perceived reluctance to implement deeper interest rate cuts, seeking a Fed leader who will more actively align with his economic agenda of stimulating growth through lower rates. Hassett, a longtime loyal economic adviser to Trump, has recently joined the chorus of critics, even accusing the central bank of partisan decision-making regarding its rate policies.

Deep Economic Roots and Future Implications

A Robust Background in Economics

At 63, Hassett brings a robust economic background to the table. His extensive resume includes serving as the 29th Chairman of the White House Council of Economic Advisers from 2017 to 2019 and as a Senior Advisor for Economic Issues during the critical COVID-19 pandemic period in 2020. Hassett also has direct experience within the central bank, having worked as an economist at the Federal Reserve Board of Governors from 1992 to 1997. Additionally, he has consulted for the U.S. Treasury Department under both George H.W. Bush and Bill Clinton administrations. A former academic at Columbia Business School, he is also a resident scholar at the American Enterprise Institute and co-authored the influential book “Dow 36,000” (1999).

Market Concerns About a Federal Reserve Chair Candidate 2025

The potential appointment of Hassett as a Federal Reserve Chair candidate 2025 raises significant questions for financial markets and economists. Observers are closely watching how his leadership might steer the future direction of U.S. monetary policy and, crucially, whether it could impact the cherished independence of the Federal Reserve. Jerome Powell’s term as Fed Chair is scheduled to conclude in May 2026, setting the stage for this important transition.

Other Possible Candidates and Political Signals

While Hassett appears to be a front-runner, other notable individuals reportedly under consideration for the Fed Chair position include former Fed Governor Kevin Warsh, current Fed Governor Christopher Waller, and Treasury Secretary Scott Bessent.

This development underscores the President’s commitment to shaping the nation’s economic leadership and further highlights Kevin Hassett’s emergence as a Federal Reserve Chair candidate 2025. and highlights the ongoing debate surrounding monetary policy and the role of the central bank in fostering economic growth. The choice of the next Fed Chair will undoubtedly have profound implications for the U.S. and global economies.

Vocabulary

Contender (noun): A person or group competing for a position of power or a title.
Example: “Kevin Hassett has emerged as a leading contender for the next Federal Reserve Chair.”
Reluctance (noun): Unwillingness or disinclination to do something.
Example: “President Trump expressed dissatisfaction with Chairman Powell’s reluctance to implement deeper interest rate cuts.”
Activist (adjective): Characterized by vigorous action or involvement, especially in a political or social cause.
Example: “Trump is seeking a Fed leader who favors a more activist approach to stimulating growth.”
Stimulating (verb): Encouraging or promoting something to grow or develop.
Example: “The President’s agenda focuses on stimulating economic growth through lower interest rates.”
Accusing (verb): Blaming someone for a fault or crime.
Example: “Hassett has been accusing the central bank of partisan decision-making regarding rate cuts.”
Partisan (adjective): Prejudiced in favor of a particular cause or party.
Example: “Critics worry about partisan influence on the Federal Reserve’s independent decisions.”
Adviser (noun): A person who gives advice, especially professionally.
Example: “Hassett has been a loyal economic adviser to Trump for nearly a decade.”
Monetary (adjective): Relating to money or currency.
Example: “The prospect of Hassett’s appointment raises questions regarding the future direction of monetary policy.”
Independence (noun): The fact or state of being independent; freedom from external control or support.
Example: “Economists are concerned about the preservation of the Federal Reserve’s independence.”
Traction (noun): The fact or quality of being drawn over a surface; popular acceptance or support.
Example: “While Hassett is gaining traction, other candidates are also being considered.”

Discussion Questions (About the Article)

Who is Kevin Hassett, and why is he being considered for the Federal Reserve Chair position?
What are President Trump’s main reasons for seeking a new Fed Chair, specifically regarding Jerome Powell?
How does Hassett’s past experience prepare him for a role like the Fed Chair?
What concerns do markets and economists have about Hassett’s potential appointment?
Besides Hassett, who else is reportedly being considered for the position?

Discussion Questions (About the Topic)

Why is the independence of a central bank like the Federal Reserve considered important?
How do interest rate decisions made by the Federal Reserve impact the economy?
What are the potential benefits and drawbacks of having a Fed Chair who closely aligns with the President’s economic agenda?
How might the “Dow 36,000” book, co-authored by Hassett, reflect his economic philosophy?
In your opinion, what qualities are most crucial for an effective Federal Reserve Chair?

Related Idiom

At loggerheads
Meaning: In dispute or disagreement; quarreling.
Example: President Trump and current Fed Chair Jerome Powell have been at loggerheads over interest rate policy.

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This article was inspired by: Reuters, July 9, 2025