Kevin Hassett Emerges as Leading Contender to Replace Fed Chair Powell

White House economic adviser Kevin Hassett is gaining traction as a top candidate to succeed Jerome Powell as Federal Reserve Chair, according to a report by the Wall Street Journal. Hassett, a longtime ally of President Donald Trump, is now seen as a frontrunner ahead of former Fed governor Kevin Warsh, the report said.

The WSJ cited sources familiar with the matter who confirmed that Hassett met with Trump at least twice in June to discuss the Fed position. The growing speculation comes amid Trump's public dissatisfaction with Powell, whom he appointed in 2017. Trump has consistently criticized Powell for being too slow to cut interest rates, especially in light of inflation concerns driven by the administration’s aggressive tariff policies.

Although Powell’s term officially ends in May 2026, Trump is expected to fast-track the selection of a successor if re-elected, raising fresh concerns about the independence of the Federal Reserve. Powell has frequently warned of the inflationary risks tied to Trump’s trade agenda and has advocated for a cautious approach to rate cuts.

The Federal Reserve reduced interest rates by a total of 1% in 2024 but has signaled a slower pace of cuts in 2025. Inflation pressures, partly stemming from Trump’s tariff measures, remain a key concern for the central bank.

In addition to Hassett and Warsh, Trump has also considered Treasury Secretary Scott Bessent for the role, according to the report.

As the 2026 deadline nears and political pressure intensifies, the question of who will lead the Federal Reserve through the next phase of monetary policy remains central to market watchers and policymakers alike.