Kevin Hassett Emerges as Frontrunner for Next Federal Reserve Chair (May 2026 Term)

Kevin Hassett, current Director of the White House National Economic Council (NEC) and long-time Trump advisor, has emerged as the frontrunner to replace Jerome Powell as Federal Reserve Chair when Powell’s term concludes in May 2026 [2][3][5]. Treasury Secretary Scott Bessent leads the selection process, which has narrowed the candidate pool to five finalists: Hassett, former Fed Governor Kevin Warsh, current Fed Governor Christopher Waller, Fed Vice Chair Michelle Bowman, and BlackRock’s Rick Rieder [1][2][3][4]. Interviews with finalists end this week, with a subset set to meet White House Chief of Staff Susie Wiles and Vice President JD Vance, and an announcement expected before the Christmas holiday [2][4][5].

The selection context includes recent Fed policy moves: the Fed cut rates by 25 basis points in both September and October 2025, though FOMC members remain divided over future monetary policy actions [3]. Hassett’s alignment with Trump’s agenda (supporting rate cuts) and long-standing loyalty to the administration (he served in the first Trump term and advised on the 2024 campaign) position him favorably [1][4]. However, analysts like Neil Dutta of Renaissance Macro Research raise concerns about his ability to unify the FOMC and potential susceptibility to political pressure [5].

Cross-domain connections reveal that the White House prioritizes both alignment with Trump’s rate-cut agenda and market trust in the Fed Chair selection [5]. Hassett’s nomination could signal a shift toward more aggressive monetary easing, as markets may price in additional rate cuts in 2026 [5]. The timing of the announcement (before Christmas) is intended to reduce market uncertainty ahead of the Fed’s December meeting, though congressional confirmation may introduce volatility [2].

• Risks
  : The selection of a close Trump advisor raises concerns about eroding Fed independence, a core pillar of its credibility [5]. Additionally, Hassett may struggle to corral FOMC members to support his policy views [5].
• Opportunities
  : Early announcement of the Fed Chair nominee could reduce near-term market volatility [2]. Potential rate cuts under Hassett’s leadership may boost market sentiment and economic activity.

The Fed Chair selection process is advancing with Hassett as the frontrunner. The shortlist includes five candidates, with interviews concluding this week and an announcement expected before Christmas. Recent Fed policy includes two rate cuts in 2025, though division persists among FOMC members. Hassett’s background as a loyal Trump advisor and support for rate cuts align with the administration’s agenda, but concerns about his ability to lead the Fed effectively and maintain independence remain.