The Financial Times reported that Trump will conduct the final round of interviews. He is comparing Kevin Hassett with several other known candidates.
Senior administration officials assert that Trump and Treasury Secretary Scott Bessent will meet on Wednesday with former Federal Reserve Governor Kevin Warsh. This is part of the final evaluation process.
Hassett is the clear favorite to replace Mr. Powell when his term expires in May, but administration officials claim that the president is keeping the process open. This is to determine whether Mr. Hassett will serve a full four-year term or accept a shorter appointment.
Despite previous reports that Trump favored him, the president has indicated that he still plans to interview several finalists before choosing a new Federal Reserve chair. Trump added that the next head of the central bank must favor rapid interest rate cuts.
Cryptocurrency traders and traditional market participants are already trying to predict how the new president could affect monetary policy next year.
Administration officials stated that Bessent sent a list of pre-selected candidates to the White House that includes Hassett, Kevin Warsh, current Federal Reserve governors Christopher Waller and Michelle Bowman, and BlackRock executive Rick Rieder. At least one more interview is expected next week, and the final announcement is scheduled for early January.
Some administration members are considering whether Kevin Hassett should serve a shorter term than the usual four years. One idea being floated is that he could take Powell's position on the Board of Governors, with a term ending in 2028. This would be instead of serving a full term as president of the Federal Reserve.
President Trump wants Treasury Secretary Bessent to become the future leader of the Federal Reserve. However, Bessent has stated he does not want the position. If Hassett accepts a short-term appointment, this could favor this possibility.
So far, Powell has not said whether he plans to remain on the Board of Governors after his term ends. On the other hand, the Federal Reserve is expected to implement its third rate cut today.
The president continued his public attacks against Jerome Powell this week. He hinted that the appointments made during the Biden administration may have been incorrectly certified through a self-learning system.
