Fed Chair Role: Kevin Hassett Says Friendship With Trump Shouldn’t Be Seen As A Negative

• Hassett emphasized the importance of central bank independence and added that policy decisions at the Fed should rely on data and collective agreement.
• The consideration of Kevin Hassett’s name as the next Federal Reserve chair replacement has faced pushback from top advisers close to Trump.
• Kevin Warsh has moved into the top spot on prediction platform Kalshi, pulling ahead of Hassett for the role of Fed chair.

Kevin Hassett, director of the National Economic Council and a leading contender to become the next chair of the Federal Reserve, said on Tuesday that his connection to President Donald Trump should not be viewed negatively. 

Hassett added that he believes the president disagrees with the idea that working closely and successfully with him makes someone unfit for the role.

“The idea that someone isn’t qualified for the job because they are a close friend who’s worked well with the president is something that I think the President rejects.”

-Kevin Hassett

Fed Independence In Focus

Hassett emphasized the importance of central bank independence as the President nears a decision on who will succeed Jerome Powell. Hassett underscored that policy decisions at the Fed should rely on data and collective agreement. 

“The Federal Reserve’s independence is really, really important, and the voices of the other people at the Federal Open Market Committee, they’re important, too,” he said. “So the way you’ve got to drive interest rate movements is with consensus based on the facts and the data.”

The consideration of Kevin Hassett’s name as the next Federal Reserve chair replacement has faced pushback from top advisers close to Trump. The hesitation is tied to Hassett’s close relationship with Trump, with some advisers fearing it could raise doubts about the Fed’s independence. 

Race Between Kevin Warsh And Kevin Hassett

In a recent interview with The Wall Street Journal at the White House, Trump said former Federal Reserve governor Kevin Warsh also remains among his top choices. Although Hassett had been widely viewed as the favorite, the president’s remarks showed that Warsh is still a serious contender for the role.

Kevin Warsh’s name has taken the lead position on prediction platform Kalshi as the next Fed Chair, moving ahead of Hassett. According to the platform's data, Warsh has a 48% likelihood of being chosen by Trump as the next Fed chair, compared with Hassett’s 38%.

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