Kevin Hassett seen as top contender for US Federal Reserve chair, says Report

White House economic adviser Kevin Hassett is emerging as a leading candidate to become the next chair of the US Federal Reserve, signalling a potential shift in America’s monetary policy leadership at a critical moment for the world’s largest economy.

According to The Wall Street Journal’s report, Hassett has held at least two meetings with President Donald Trump about the Fed job in June, underscoring how seriously he is being considered as a replacement for current Chair Jerome Powell.

President Trump, known for his combative approach to central banking policy, has previously said he has three or four names in mind for the top job at the Fed. Reuters reports those contenders reportedly include former Fed Governor Kevin Warsh, current Fed Governor Christopher Waller, Treasury Secretary Scott Bessent, and Hassett himself.

This short list highlights Trump’s preference for advisers he believes will align with his economic agenda, particularly on interest rates and trade policy.

Trump’s consideration of new names for the Fed chair role comes after years of public tension with Jerome Powell. Reuters notes that Trump has repeatedly criticised Powell for not cutting interest rates aggressively enough to support the economy, especially during trade wars and the pandemic recovery. He has openly blamed Powell for slowing economic growth at times, describing the central banker as an obstacle to his pro-growth policies.

While the Fed is an independent institution, Trump’s repeated attacks have tested that independence and raised questions about how politicised monetary policy could become under a second Trump term. Powell’s term is due to expire in May 2026, giving Trump, if re-elected there will be an opportunity to reshape the central bank’s leadership sooner than later.

Kevin Hassett is a well-known conservative economist who previously chaired the White House Council of Economic Advisers during Trump’s first term. He has been one of Trump’s more loyal economic advisers, helping shape tax policy and frequently defending the administration’s trade stance.

According to Reuters, his name surfacing now as a frontrunner for the Fed role underscores Trump’s desire to install an ally who shares his preference for lower interest rates and an activist approach to supporting growth.

The Fed is navigating a delicate balance as it tries to control inflation without triggering a severe economic downturn. Under Powell, the Fed has managed a historic series of rate hikes in 2022–23 to tame runaway inflation, but it has slowed or paused increases more recently to assess the impact on growth.

Reuters points out that whoever leads the Fed from 2026 will have to steer monetary policy through a landscape that remains uncertain, with lingering inflation risks, geopolitical tensions, and debates over financial regulation all in play.

Trump’s openness about replacing Powell early reflects his determination to bend the central bank to his economic priorities if he secures another term. While no final decision has been announced, the WSJ’s report revelations about Hassett’s meetings with Trump suggest the President is preparing to move quickly on his shortlist.

For markets, the possibility of a Trump-aligned Fed chair signals potential shifts in interest-rate policy and broader debates over the Fed’s independence, questions that will loom large as the 2026 leadership transition approaches.