The White House’s National Economic Council Chairman, Kevin Hassett, is widely viewed by President Donald Trump’s advisers and allies as the strongest contender to become the next Federal Reserve Chair, as the selection process for the central bank’s leader enters its final weeks.

According to sources familiar with the matter who spoke on condition of anonymity, if Hassett is ultimately chosen, Trump would place a close confidant—someone he knows personally and trusts—inside the independent central bank.

Hassett is seen as an individual likely to carry Trump’s stance on interest-rate cuts into the Federal Reserve, something Trump has long wished to influence more directly.

However, Trump is known for making both personnel and policy decisions in unexpected ways. As a result, the nomination is not final until it is formally announced.

White House Press Secretary Karoline Leavitt stated, “No one really knows what President Trump will do until he does it. Just wait and see!”

Historically, appointing Fed governors and the Fed Chair has been among the most direct tools a president can use to influence the central bank. During his first term, Trump nominated Jerome Powell as Fed Chair, a decision he later regretted when Powell did not lower interest rates as quickly as Trump wanted.

Hassett aligns closely with Trump’s economic views, including the belief that interest rates should be cut further. In a Fox News interview on November 20, Hassett said he would “cut interest rates right now” if he were Fed Chair, because “the data show that we need to do it.” He also criticized the central bank for losing control of post-pandemic inflation.

Treasury markets strengthened following reports that Hassett had become the leading contender, pushing the yield on 10-year Treasury notes below 4% for the first time in a month.

The Federal Reserve has long been a target of Trump’s criticism. He often blasted Powell for being “too slow” to reduce borrowing costs and at times publicly floated the idea of firing him.

Trump also took issue with renovation work at the Fed’s headquarters. The White House is currently involved in litigation stemming from Trump’s attempt to remove Fed Governor Lisa Cook.

This environment has placed pressure on Treasury Secretary Scott Bessent—who oversees the selection process—to balance candidates who support rate cuts with those who can secure the confidence of both financial markets and the president.

After holding rates steady for much of 2025, the Fed began cutting its benchmark rate this fall, lowering it by 25 basis points in both September and October. However, Fed officials have become increasingly divided over inflation and the labor market, making the December rate decision especially challenging.

Bessent told CNBC on Tuesday that Trump is likely to announce his pick for Fed Chair next month, ahead of the December 25 Christmas holiday.

Trump has hinted he is close to a decision. On November 18, he said, “I think I already know my pick,” without revealing the name. Back in September, Trump identified Hassett, former Fed official Kevin Warsh, and current governor Christopher Waller as his top three options.

“During his first term, President Trump realized how critical it is to have people who understand his priorities—particularly in key roles like the FBI Director and Federal Reserve Chair,” said Sean Spicer, who served as White House Press Secretary during Trump’s first term.

“I can’t imagine him appointing someone who doesn’t have a strong personal relationship with him to replace Jerome Powell.”

Interview Process

Since the summer, Bessent has overseen the search for Powell’s successor, interviewing more than a dozen candidates before narrowing the list to five finalists: Hassett, Warsh, Waller, Michelle Bowman, and BlackRock executive Rick Rieder.

Bessent said the interviews would conclude this week. Several finalists will soon meet with White House Chief of Staff Susie Wiles and Vice President JD Vance. The eventual nominee must also be confirmed by the Senate.

Hassett’s name gained prominence as Trump’s frustration with Powell intensified. Last week, Trump labeled Powell “extremely incompetent” and admitted he would have fired him if not for advisers like Bessent urging him to wait.

Trump even joked that if Bessent failed to help deliver rate cuts, he would fire him too.

Despite the remark, Trump and Bessent maintain a positive working relationship. Trump has repeatedly mentioned Bessent as a possible candidate for Fed Chair himself, though Bessent has said he prefers to remain at the Treasury Department rather than lead the central bank.

Neil Dutta of Renaissance Macro Research predicted that Hassett may face difficulties persuading other members of the Federal Open Market Committee (FOMC), which sets interest rates.

“I don’t think Hassett will have an easy year if he becomes chair,” Dutta said. “He also appears to be the one Trump could most easily influence—unlike Bessent.”

The next Fed governor could serve a 14-year term beginning February 1. The seat expiring at that time is currently held by Stephen Miran, who is on unpaid leave from the White House Council of Economic Advisers. Meanwhile, Powell’s term as Chair ends in May 2026, though he may continue serving as a board member for an additional two years.

Powell has not stated whether he plans to step down when his chairmanship ends. Should he resign, the administration would gain another opportunity to appoint a replacement next year.