"Trump's comments, while not clearly definitive, have upended expectations around the extensive search the White House has undergone to find a new Fed chair, one of the most powerful financial positions in the world. The president's remarks have boosted the prospects for Kevin Warsh, a former Fed governor and already a top contender for the position. Hassett has generally been seen as the front-runner in the race to replace Powell because he has worked for Trump since his first presidential term. Last month, Trump referred to Hassett as a "potential Fed chair.""
"Warsh's candidacy has also likely been boosted by the Justice Department's subpoenas of the Federal Reserve last week, revealed Sunday in an unusually direct video statement by Powell. The Fed chair charged that the subpoenas were essentially punishment for the central bank's refusal to lower interest rates as sharply as Trump would like. The criminal investigation - a first for a sitting Fed chair - sparked pushback on Capitol Hill, with many Republican senators dismissing the idea that Powell could have committed a crime. The subpoenas related to testimony Powell gave last June before the Senate Banking Committee that touched on a $2.5 billion building renovation project."
President Donald Trump said he would like to keep Kevin Hassett at the White House rather than nominate him to replace Jerome Powell as Federal Reserve chair. Trump praised Hassett at a White House event and thanked him for a television appearance. The comments disrupted expectations around the extensive search for a new Fed chair and increased Kevin Warsh's prospects. Hassett had been viewed as a front-runner because he worked for Trump during his first term. Powell's chair term ends May 15 but he could remain on the Fed board. Justice Department subpoenas of the Fed and Powell's video response have intensified scrutiny, and the subpoenas relate to Powell's Senate testimony about a $2.5 billion building renovation, prompting pushback from many Republican senators.
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