With the Federal Reserve chairmanship in flux, the White House is grappling with the potential departure of a key economic advisor. President Trump has voiced his reluctance to see National Economic Council Director Kevin Hassett leave his current role, citing it as a “serious concern” should Hassett be tapped for the Fed’s top job.
Hassett, an experienced economist who previously served as a senior fellow at the American Enterprise Institute, has emerged as a potential candidate to succeed outgoing Fed Chair Jerome Powell. However, the president has made clear his preference for Hassett to remain in his existing position within the administration.
“I like him right where he is,” Trump told reporters on Tuesday. The president emphasised Hassett’s value to the White House, noting that his departure would be a significant loss.
The potential shift of Hassett from the National Economic Council to the Federal Reserve comes at a critical juncture, with the US economy navigating a delicate period of slowing growth and heightened trade tensions. Hassett’s expertise in areas such as tax policy and macroeconomics has been instrumental in shaping the administration’s economic agenda.
“Kevin Hassett is a talented individual, and his contributions to the White House have been invaluable,” said a senior administration official who spoke on the condition of anonymity. “Retaining key personnel with deep economic knowledge is crucial as we navigate the current economic landscape.”
The search for the next Fed chair has taken on increased urgency as Powell’s term is set to expire in early 2024. While the president has the authority to nominate a new chair, the decision will likely be influenced by a range of factors, including the need to maintain stability and continuity within the central bank.
Analysts have noted that Hassett’s potential move to the Fed could be viewed as a vote of confidence in his abilities, but the White House’s reluctance to see him depart suggests the administration may be wary of disrupting its existing economic team.
“Kevin Hassett is highly respected in the field of economics, and his selection for the Fed chair would be a significant endorsement of his expertise,” said Sarah Binder, a professor of political science at George Washington University. “However, the president’s comments indicate that the administration values his contributions in his current role and may be hesitant to see him take on a new position.”
As the White House continues to weigh its options, the fate of Hassett and the future leadership of the Federal Reserve remain closely watched developments in the ongoing economic policy debate.
