What Hassett As Potential Fed Chair Would Mean For Interest Rates

BySimon Moore,

Senior Contributor.

Kevin Hassett is now the lead candidate to be nominated as the next Federal Chair according to prediction markets and media reports. Prediction markets currently give Hassett a 7 in 10 chance of receiving the nomination to replace Jerome Powell from February 2026. According to Bloomberg reporting, Trump has made his choice for Fed Chair so any announcement could come soon. Still, it would be several months until any candidate likely assumed the role of Fed Chair in May 2026.

Hassett is currently Chair of the National Economic Council, he has previously advised various Republican Presidential candidates on economic policy, worked at the Federal Reserve and U.S. Treasury and taught at Columbia Business School.

If appointed, Hassett’s appointment might mark an incremental reduction in the Federal Reserve’s independence as has been a theme under President Trump. Trump has verbally attacked current Chair Jerome Powell including threats to fire him. Trump has also attempted to fire Fed Governor Lisa Cook, a process which is ongoing and will be before the Supreme Court for oral argument on 21st January.