National Economic Council Director Hassett has become the leading candidate to take over the Federal Reserve.

According to sources familiar with the matter, with the selection process for the new Federal Reserve Chair entering its final weeks, Kevin Hassett, director of the National Economic Council, has emerged as the leading candidate to take the helm of the Fed, according to White House advisors and Trump's allies. Sources, who requested anonymity, indicated that if Hassett is appointed, Trump will be placing a close ally he knows and trusts within the independent central bank. Some point out that Hassett is seen as the one capable of bringing Trump's interest rate-cutting philosophy to the Fed—an institution Trump has long sought to influence, now facing a historic turning point. However, they also cautioned that Trump is known for his unpredictable personnel decisions, and anything can change before the official nomination is announced. White House Press Secretary Karoline Leavitt stated in a statement: "No one can predict President Trump's decisions before he takes action. Stay tuned!" Fox News White House correspondent Edward Lawrence also stated that there is currently no frontrunner in the selection of the next Fed Chair. A senior U.S. official confirmed that the final list of candidates has not yet been submitted to the White House. The selection of the Federal Reserve Chairman and Governors has historically been the most direct way for a president to influence the central bank. During his first term, Trump nominated current Chairman Jerome Powell, and when Powell failed to implement rate cuts as expected, the president deeply regretted his decision. Hassett is highly aligned with Trump on economic policy, with both believing further rate cuts are necessary. He declared to Fox News on November 20 that if he were in charge of the Fed, he would "cut rates right now" because "the data supports that decision." The economist also criticized the Fed for failing to effectively control inflation in the later stages of the pandemic. As news of Hassett's leading position spread, the US Treasury market rose, with the 10-year Treasury yield falling below 4% for the first time this month. The Fed has long served as Trump's "policy punching bag," and the Republican has repeatedly criticized Powell's rate-cutting actions as "seriously lagging," even publicly considering removing him from office. Trump has also accused the Fed of extravagant renovations at its campus, and the White House is currently embroiled in legal proceedings regarding Trump's attempt to remove Fed Governor Lisa Cook. These pressures are now mounting on Treasury Secretary Scott Bessent, who is leading the selection process—he must carefully balance a candidate who supports significant interest rate cuts while also gaining the trust of both the president and financial markets. After keeping interest rates unchanged for most of 2025, the Federal Reserve began cutting rates this fall, lowering the benchmark rate by 25 basis points twice in September and October. However, growing disagreements among officials regarding the outlook for inflation and the job market have made the possibility of further rate cuts at the December meeting uncertain. Bessent told CNBC on Tuesday that Trump is highly likely to announce his nominee for Fed Chair before Christmas on December 25. Trump himself has also hinted that the selection process is nearing completion, stating on November 18 that he "had someone in mind," but without revealing a specific name. Back in September, Trump indicated that Hassett, former Fed official Kevin Warsh, and current Governor Christopher Waller constituted the final three candidates. "President Trump learned firsthand during his first term how crucial it is to have those who understand his governing direction in key positions such as FBI Director and Federal Reserve Chairman," former White House Press Secretary Sean Spicer admitted. "It's hard to imagine him appointing someone with whom he has a strained personal relationship to succeed Powell." (Jinshi)