Trump advisers quietly question Hassett's fit for Fed chair

Could a White House insider with a knack for media spin really steer the Federal Reserve through turbulent economic waters?

President Donald Trump is weighing whether to nominate Kevin Hassett, his current economic adviser, or former Fed board member Kevin Warsh to replace Jerome Powell as Fed chair when Powell’s term concludes in May, amid swirling doubts within the administration about Hassett’s readiness for the pivotal role, as POLITICO reports.

For months, Trump has been mulling over a successor to Powell, who has drawn the president’s ire for not slashing interest rates as aggressively as desired.

Internal Doubts on Hassett’s Leadership

Within the Trump administration, Hassett’s track record as head of the National Economic Council has come under scrutiny, with some officials whispering that his impact on key policy areas like trade and deregulation has been minimal at best.

Critics argue that Hassett plays more of an advisory role than a true policy coordinator, leaving questions about whether he can helm an institution as consequential as the Fed.

One insider familiar with the NEC’s inner workings quipped, “You go down your list, and what do they do there exactly?” That jab cuts deep, suggesting Hassett’s presence might be more symbolic than substantive—hardly the resume for a Fed chair tasked with bold reforms.

Hassett’s Defenders Push Back Hard

Yet, not everyone in Trump’s orbit shares this skepticism, as some advisers laud Hassett’s research credentials and his contributions to economic policy initiatives.

Tomas Philipson, a staunch defender, praised Hassett’s unique blend of skills, saying, “He has the dual skill, that I don’t think any of the other remaining candidates have, of both having a foot in the economic research community … and at the same time he can message well.” While that’s a glowing endorsement, one wonders if academic prowess and soundbites are enough to navigate the Fed’s complex mandate.

Brad Gerstner also credits Hassett for mature input on the GOP tax package, a cornerstone of Trump’s economic legacy, though Hassett’s visibility on other fronts remains notably dim.

Economic Context Fuels Fed Debate

With the U.S. unemployment rate climbing to 4.6% in November per the Labor Department, the stakes for the next Fed chair couldn’t be higher.

Hassett, appearing on CNBC, defended the administration’s economic record while nudging the Fed to lower rates further, a stance that aligns with Trump’s own frustrations with Powell.

Still, doubts linger about whether Hassett’s views mesh fully with Trump’s tariff-heavy approach to trade, a policy area where critics describe his role as little more than a “spectator.”

Competing Candidates in the Mix

Meanwhile, Trump is also considering other contenders like Kevin Warsh and Christopher Waller, each bringing their own strengths to the table for this critical position.

Hassett touts his prior Fed experience as a potential edge and has called for greater transparency at the central bank, but skeptics question if he can truly lead transformative policy shifts.

Ultimately, as Trump drives many policy decisions himself—especially on trade—the next Fed chair must balance independence with alignment to the president’s economic vision, a tightrope Hassett may or may not be equipped to walk.