Trump Says Kevin Hassett Is His ‘Potential Future Fed Chair’ — What Does It Mean For Markets?
Kevin Hassett has emerged as the leading candidate to replace Federal Reserve Chair Jerome Powell, signaling a potential shift toward sharply easier monetary policy next year.
A Break From The Powell Era
Hassett, currently serving as Director of the National Economic Council, holds an 80% probability of becoming the next Fed Chair based on prediction market data from Kalshi as of Dec. 2.
He is known for a supply-side philosophy that argues the inflation battle is effectively won and that maintaining restrictive policy amounts to unnecessary economic drag.
His public comments throughout 2024 and 2025 reveal a consistent push for lower interest rates.
In multiple interviews he said he would favor immediate cuts, agreeing with President Donald Trump that borrowing costs should move significantly lower.
He has also suggested that a December decision not to cut rates would reveal partisan motivations rather than economic logic.
The President on Tuesday mentioned Hassett as a “potential future Fed Chair”, after remarking that his list of candidates is “down to one.”
If appointed, Hassett would take Powell’s seat in May 2026, following the expiration of Powell’s term.
Powell is expected to resign his remaining Governor position shortly afterward, consistent with precedent.
That step would give the administration another vacancy to fill on the Board of Governors.
Warsh’s Role And A Possible Structural Shift
Former Fed Governor Kevin Warsh, who has openly criticized the institution’s current structure, remains Hassett’s strongest competitor …
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