Trump’s Top Economic Advisor Emerges as Frontrunner to Lead U.S. Fed
Kevin Hassett, Trump’s trusted economic advisor, now leads betting markets as the likely successor to Jerome Powell as chair of the US Federal Reserve.
Markets tracked online show Hassett’s odds rising after reports cited him as Trump’s serious pick. He overtook other candidates like ex-Fed governor Kevin Warsh and Treasury Secretary Scott Bessent.
Powell’s term as Fed chair runs until May 2026, but the political climate is tense. Trump has criticized Powell’s policy of keeping interest rates high to counter inflation, saying it slows the economy and job growth.
Trump now signals he wants a Fed leader ready to lower rates. That could help businesses and stock markets in the short term but worries investors who fear higher inflation or less trust in the Fed’s independence.
Hassett’s experience and loyalty to Trump make him stand out. He played a key role in Trump’s 2017 tax cuts and has defended cheaper borrowing to drive growth.
His possible nomination spotlights a bigger struggle: whether the central bank will act independently or bend to political pressure. The US Fed’s decisions affect borrowing costs worldwide, hitting businesses, savings, and currencies in every major economy.
If Trump secures a loyalist as chair, the Fed’s role as an independent bank could weaken, leading global markets to raise alarms. This succession fight, captured in market figures and political statements, is not just about personalities.
It is about whether the world’s most influential central bank will remain a steady hand — or become a tool of whoever holds power in Washington. All claims here reflect official positions, public figures, and open market data.
This article was produced by The Rio Times’ automated AI newsroom. Editorial responsibility: Matthias Camenzind, Publisher and Editor-in-Chief. The Rio Times also runs Ask Rio Times, which answers from 100,000+ of our own articles, the daily Latin America Power Map, and prediction-market odds on elections and markets.. How we use AI · Report an error