President Donald Trump expressed a preference for retaining National Economic Council Director Kevin Hassett as his chief economic advisor, a declaration that may alter the competitive landscape regarding the successor to Jerome Powell as chair of the Federal Reserve. During an appearance in the White House, Trump remarked, “I see Kevin’s in the audience, and I just want to thank you. You were exceptional on television today. I actually want to keep you where you are, if you want to know the truth.”
Hassett has emerged as a prominent candidate for the leadership of the central bank, closely vying with former Fed Governor Kevin Warsh. Trump has consistently criticized the Federal Reserve and has signaled his intention to replace Powell when his term as chair concludes in May. Hassett and Warsh are among the five finalists for the position, which also features current Fed Governors Christopher Waller and Michelle Bowman.
Trump has signaled his intention to appoint a successor to Powell within this month, although he has not specified an exact date. Addressing White House chief of staff Susie Wiles, Trump remarked, “We don’t want him to lose [Hassett], Susie, but we’ll see how it all works out.” Following Trump’s remarks, participants on the predictions market platform Kalshi increased their wagers, assigning a 60% probability to Warsh securing the position, in contrast to 16% for Hassett and 14% for Waller. As of Wednesday, Warsh and Hassett were nearly tied. “It is not certain this is a definitive signal — the President has given various signals at various times and appears to enjoy the drama of this Celebrity Apprentice season — but it does look as if the former Fed governor is for the first time the clear front-runner,” stated Krishna Guha.
Traders on Polymarket exhibited a comparable trend, with Warsh commanding 60%, followed by Hassett at 15% and Waller at 13%. Market participants are assigning minimal probabilities to Bowman and BlackRock’s fixed income head, Rick Rieder, who are also regarded as finalists in this context.