The selection of a new Federal Reserve Chairman has become uncertain again.
According to CNBC, citing White House sources, the nomination of National Economic Council Director Hassett as Federal Reserve Chairman, which was initially the most talked-about candidate, has been opposed by some senior members of Trump's team, due to concerns that Hassett's relationship with the president is too close, especially in monetary policy decisions.
After several rounds of screening, the shortlist of 11 candidates had been narrowed down to 5 by a month ago. The final interviews, originally scheduled for early December, were canceled, and Trump unexpectedly met with former Federal Reserve Governor Warsh first.
According to CCTV Finance, Trump clearly gave Warsh more credit after the meeting, revealing that Warsh was his top choice. He pointed out that Warsh was "broadly in agreement" with him on monetary policy, and that he asked the next chairman to consult him when setting interest rate policy, but not to completely follow his advice.
Ironically, Trump has repeatedly and publicly criticized current Chairman Powell for being "disobedient" and too slow in cutting interest rates, thus dragging down the US economy.
Furthermore, Trump has a closer personal relationship with Warsh than with Hassett, who advised Trump's transition team on economic policy. Warsh's father-in-law, billionaire Ronald Lauder, was a former major donor to Trump.
Speaking about Hassett, Trump said he thought both Kevins (both contenders share the name "Kevin") were excellent. Market prediction platform Calshi predicts Hassett's chances of winning the nomination have plummeted from approximately 71% to 52%, while Warsh's chances have risen to 41%.
Walsh, 55, is currently a visiting scholar at Stanford University. He advocates for the Federal Reserve to maintain policy independence, promotes reforms such as balance sheet reduction and deeper interest rate cuts, and supports free trade, a stance that differs from Trump's.
During his previous term, Trump interviewed Warsh, then the youngest member of the Federal Reserve Board, for the position of Federal Reserve Chairman, but ultimately chose the more experienced Powell after lobbying from then-Treasury Secretary Mnuchin. Following the election last November, Trump considered nominating Warsh as Treasury Secretary and assessed his potential to succeed Powell.
Earlier this year, Warsh published articles criticizing the Federal Reserve for allowing inflation to rise sharply and stating that he would support another rate cut even if Trump's tariff policies were implemented.
JPMorgan Chase Group Chairman and CEO Jamie Dimon and others have recently publicly expressed their support for Walsh.
Hassett, 63, is one of Trump's core economic advisors. He served as chairman of the Council of Economic Advisers during Trump's first term and will assume the position again after Trump returns to the White House in 2025, where he is deeply involved in policy-making.
Hassett advocates for loose monetary policy to stimulate growth and favors tax cuts, fiscal easing, deregulation, and low interest rates. She has stated that if elected, she would be more aggressive in cutting rates, a stance highly aligned with Trump's. Some analysts suggest that if Hassett is ultimately elected, she could lower the benchmark federal funds rate from the current 3.75–4% to well below 3%.
Last week, when asked by the media whether he would remain loyal to Trump or make his own independent economic judgments after taking the helm of the Federal Reserve, Hassett said that the most important responsibility of the Fed chair is to focus on economic data and avoid getting involved in politics.
Treasury Secretary Bessant initially indicated that the final candidate would be announced before the Christmas holidays, but Trump subsequently postponed the announcement to early 2026.
Sources familiar with the matter indicated that Trump may change his mind before the final answer is announced, just as he said earlier this year when responding to questions about the reversal of tariff measures, that he is a "very flexible person".
(Article source: Jiemian News)
