Trump Says He Has Picked Next Fed Chair as Kevin Hassett Signals He’s ‘Happy to Serve’

WASHINGTON — December 1, 2025

President Donald Trump says he has decided who will replace Jerome Powell as chair of the Federal Reserve, stoking expectations that his top economic adviser Kevin Hassett is now the clear front‑runner for one of the most powerful jobs in global finance. ^[1]

Speaking to reporters aboard Air Force One on Sunday, Trump said he “knows” who he will nominate but declined to reveal the name, even as prediction markets, Wall Street and Washington insiders increasingly bet on Hassett, the director of the White House National Economic Council (NEC). ^[2]

Hassett, for his part, has tried to downplay the speculation — calling it a “rumor” in one interview — while simultaneously telling television audiences he would be “happy to serve” if chosen and highlighting how markets have already reacted to the prospect of new Fed leadership. ^[3]

Key takeaways

Trump says he has chosen the next Fed chair and will announce the nominee “soon,” without confirming whether it is Kevin Hassett. ^[4]
Hassett is widely viewed as the leading contender after a Bloomberg report and a sharp swing in betting and prediction markets in his favor. ^[5]
On CBS and Fox News, Hassett called the speculation a “rumor” but said he’d be “happy to serve,” stressing that markets cheered signs Trump is close to a decision. ^[6]
Analysts expect a Hassett‑led Fed to push for deeper interest‑rate cuts, potentially “well below 3%,” in line with Trump’s demands for more aggressive easing. ^[7]
A Hassett appointment could cement a 5–2 majority of Trump appointees on the Fed Board, intensifying debate over the central bank’s independence and the risk of politicizing monetary policy. ^[8]

Trump: “I know who I’m going to pick”

Trump’s latest comments came during an in‑flight gaggle with reporters on Air Force One as he traveled back to Washington from Florida on Sunday. He said he had decided on his nominee to lead the central bank when Powell’s term expires in May 2026, but declined to say who it is or when exactly the announcement will drop. ^[9]

Asked directly whether Hassett is his choice, Trump reportedly smiled and refused to answer, reiterating only that a formal announcement is coming “soon.” ^[10]

The move caps months of public frustration from Trump over Powell’s handling of interest rates. The Fed has already cut its benchmark rate at its last two meetings, but the president has been pressing for steeper and faster reductions to support growth, especially heading into an election year for Congress and amid lingering pockets of economic weakness. ^[11]

Treasury Secretary Scott Bessent, who is overseeing the selection process, said last week there is a “very good chance” Trump will name a new Fed chair before Christmas — a timeline that aligns with the president’s latest remarks and has helped focus markets on a narrow window for the announcement. ^[12]

Hassett calls speculation a “rumor” — but points to cheering markets

The weekend media blitz that fueled speculation about Hassett’s chances began on Sunday morning, when he appeared on CBS News’ Face the Nation.

Pressed about reports that he is now the frontrunner after a Bloomberg scoop, Hassett described the chatter as a “rumor” and said he was simply honored to be mentioned alongside several “great candidates.” ^[13]

Rather than talk up his own odds, he repeatedly turned the conversation toward how investors reacted when news broke that Trump was nearing a decision on Powell’s replacement. According to Hassett, the key “story for markets” was that the president is close to appointing a new chair committed to lowering borrowing costs. ^[14]

Hassett pointed to a strong Treasury auction and a drop in interest rates after the nomination rumors surfaced, arguing that Americans can “expect President Trump to pick somebody who’s going to help them have cheaper car loans and easier access to mortgages at a lower rate.” ^[15]

That framing serves two purposes: it reassures investors worried about the Fed’s independence by casting the leak as a market‑friendly development, and it emphasizes the administration’s focus on getting credit costs down for households ahead of 2026.

On Fox News, Hassett says he’d be “happy to serve”

Hassett’s message was even more direct in a separate interview on Fox News’ Fox & Friends Weekend, taped Sunday and aired by Fox Business. There, the NEC director said openly that he would be “happy to serve” as Fed chair if Trump chose him. ^[16]

He stressed that the president has “a whole bunch of great candidates” and argued that any one of them would be a “trade‑up” from the current leadership at the central bank. He again cited market performance — falling yields and one of the strongest Treasury auctions in months — as evidence that investors expect Trump to install a new chair who is friendlier to lower rates. ^[17]

The Fox interview dovetailed with a Bloomberg report last week and follow‑on coverage in outlets from Benzinga to The Business Times, all naming Hassett as the leading candidate among a shortlist of five. ^[18]

Markets are already trading like Hassett is the favorite

Financial markets have wasted little time adjusting to the idea of a more dovish Fed chair aligned with Trump’s push for aggressive cuts.

Treasury yields moved lower after reports that Trump was closing in on a choice and that Hassett was the frontrunner. At one point, the 10‑year Treasury yield briefly dipped below 4%, according to Bloomberg reporting cited by The Business Times. ^[19]
Prediction and betting markets have swung sharply toward Hassett. Data quoted by Reuters and other outlets show his odds jumping above 50% on Polymarket, more than double the probability assigned to Fed Governor Christopher Waller. Other estimates, reported by U.S. financial media, put Hassett’s odds in the mid‑60% range, with Waller and former Fed Governor Kevin Warsh well behind. ^[20]

For the next several months, Hassett may effectively function as a “shadow Fed chair,” in the words of one Reuters analysis. From now until a new chair is sworn in next May, investors are likely to dissect his every comment on inflation, growth and interest rates alongside those of Powell himself. ^[21]

That unusual overlap raises the stakes for any public remarks Hassett makes — and gives Trump an extra lever of influence over market expectations even before the official hand‑off at the Fed.

What a Hassett‑led Fed could mean for interest rates

Hassett is widely seen as more dovish than Powell and closely aligned with Trump’s view that the Fed has been too slow to cut rates. Recent analysis from Bank of America, cited by financial media, suggested that if confirmed Hassett would likely push to drive the benchmark federal funds rate “well below 3%,” significantly deeper than current market consensus for the next 12–18 months. ^[22]

The Fed’s policy committee is already debating whether to cut again at its December 9–10 meeting. Officials are split between those who want to move faster to support a cooling labor market and those worried that inflation, still above the 2% target, could flare again if policy is loosened too quickly. ^[23]

A chair inclined to side with the more dovish camp could:

Accelerate the pace and depth of rate cuts, lowering costs for mortgages, car loans and business credit.
Boost risk assets and housing, at least in the short term, as cheaper money supports asset prices.
Risk undermining inflation‑fighting credibility if markets conclude the Fed is prioritizing Trump’s political agenda over its dual mandate of stable prices and maximum employment.

Some analysts warn that if Hassett pushes cuts as far and as fast as Trump has demanded — he has talked publicly about 2–3 percentage points of additional easing — it could pressure the U.S. dollar and push up long‑term inflation expectations, even as stocks cheer the initial move. ^[24]

Independence worries: A 5–2 Trump majority at the Fed?

Beyond the immediate interest‑rate outlook, the bigger structural question is what a Hassett appointment would mean for the Fed’s independence.

Trump already has loyalists in key positions: board member Stephen Miran, appointed earlier this year, along with holdover governors Christopher Waller and Michelle Bowman from his first term. Reuters notes that if Hassett replaces Powell, and if a pending legal case involving Governor Lisa Cook opens another vacancy, Trump appointees could soon enjoy a 5–2 majority on the seven‑member Fed Board. ^[25]

Critics see this as the clearest sign yet of growing political capture at the central bank. They worry that a bloc of Trump‑aligned governors might be more willing to deliver the steep cuts he wants even if inflation remains near or above target.

Central bankers and some former Fed officials counter that institutional safeguards — including the Fed’s legal mandate, lengthy terms and the need to maintain market credibility — tend to pull even politically chosen chairs back toward orthodox policy over time. But they also acknowledge that a high‑profile, outspoken chair can shape the tone of debate and the public’s understanding of the Fed’s goals in ways that go beyond a simple rate forecast. ^[26]

The other contenders: Waller, Warsh, Bowman and Rieder

While Hassett has moved into pole position, Trump’s team has consistently emphasized that several candidates remain under consideration.

According to Bessent and multiple media reports, the shortlist includes: ^[27]

Christopher Waller, a current Fed governor known for shifting from dovish to more hawkish positions as inflation surged earlier in the decade. ^[28]
Michelle Bowman, another Trump‑appointed governor who currently serves as the Fed’s vice chair for supervision. ^[29]
Kevin Warsh, a former Fed governor and longtime critic of unconventional monetary policy who has been floated for top economic roles in previous Republican administrations. ^[30]
Rick Rieder, BlackRock’s chief investment officer for global fixed income, who would bring deep markets experience but no prior Fed service. ^[31]

Trump has also mused publicly about nominating Bessent himself, according to some reports, though the Treasury secretary has repeatedly batted down that idea. ^[32]

Still, with prediction markets and much of Wall Street now priced for a Hassett pick, any deviation from that path could jolt bond yields and the dollar in the weeks ahead.

Who is Kevin Hassett?

Hassett, 63, is a familiar figure in Republican economic circles and no stranger to the Fed. ^[33]

He has served as director of the National Economic Council since January 2025, making him Trump’s top in‑house economic adviser in the current administration. ^[34]
During Trump’s first term, he was chair of the Council of Economic Advisers from 2017 to 2019, playing a central role in selling the 2017 Tax Cuts and Jobs Act and defending the administration’s trade and tariff policies. ^[35]
Earlier in his career, Hassett worked as an economist at the Federal Reserve Board of Governors, served as a Treasury policy consultant under both Republican and Democratic administrations, and spent years as a scholar at the conservative American Enterprise Institute. ^[36]

He is also well known in markets as the co‑author of Dow 36,000, a 1999 book that famously predicted a massive, long‑term surge in U.S. equity valuations — a forecast widely mocked after the dot‑com bubble burst but still frequently cited by critics and supporters alike as shorthand for his optimistic view of U.S. growth potential. ^[37]

Supporters say that background, plus his close relationship with Trump, would make him an effective communicator of Fed policy and a strong advocate for pro‑growth, pro‑market reforms. Skeptics worry that the same traits could make it harder for him to resist political pressure if the White House demands rate cuts that clash with the data.

When will we know — and what to watch next?

For now, markets and policymakers are watching three clocks at once:

The White House clock: Bessent’s “by Christmas” timeline — and Trump’s own promise of an announcement “soon” — point to a decision window over the next few weeks. ^[38]
The Fed’s December meeting: The FOMC gathers December 9–10 to decide on rates, with odds tilted toward another cut but significant uncertainty remaining. The identity of the next chair, even if not yet confirmed, could shape how investors interpret that decision. ^[39]
The Senate confirmation calendar: Once Trump formally names his pick, hearings and a confirmation vote will follow. The process could become a flashpoint in broader partisan debates over inflation, jobs and the proper role of the Fed.

Until then, Kevin Hassett’s public comments will keep carrying outsized weight. Whether he ultimately becomes chair or not, his weekend media blitz — and Trump’s declaration that the choice has been made — have already shifted expectations for U.S. monetary policy heading into 2026.