"National Economic Council Director Kevin Hassett, one of the top contenders to replace Jerome Powell as Federal Reserve chair, downplayed any role that President Donald Trump's opinion would have in setting interest rates. That's despite Trump repeatedly insisting that he ought to have some say on monetary policy. Most recently, he said Friday his voice should be heard because "I've made a lot of money.""
"Trump told the Wall Street Journal on Friday that Warsh was at the top of his list and said "the two Kevins are great." The comment surprised Wall Street, which had overwhelming odds on Hassett as the favorite. On the prediction market Kalshi, the probability that he will be nominated as Fed chair has plunged to 50% from 80.6% earlier this month, while Warsh's odds shot up to 41% from 11%."
The Federal Reserve remains independent, with the chair responsible for building consensus among Federal Open Market Committee policymakers on interest rates. The president's opinion would carry no weight in FOMC votes. Kevin Hassett emphasized enjoyment of daily conversations with the president despite that lack of influence. Kevin Warsh became a leading alternative candidate after a White House meeting and presidential praise. Prediction-market odds shifted sharply: Hassett's nomination probability fell to about 50% from 80.6%, while Warsh's rose to about 41% from 11%. A Fed chair nomination is expected in early 2026, and questions about support for future rate cuts have been raised.
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