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Hassett Emerges as Frontrunner for Fed Chair as White House Weighs Pre-Christmas Pick

Treasury Secretary Scott Bessent says a decision is likely before Christmas.

Overview

  • Treasury Secretary Scott Bessent has finished a second round of interviews and is evaluating five finalists — Kevin Hassett, Christopher Waller, Michelle Bowman, Kevin Warsh and Rick Rieder — ahead of Jerome Powell’s term ending in May 2026.
  • The White House says discussion of potential nominees remains speculation until President Trump makes an announcement.
  • Prediction markets now give Hassett roughly low-to-mid 50% odds, while short‑term yields briefly dipped on the reports before stabilizing and traders continue to price a December rate cut.
  • Hassett has publicly favored faster and deeper rate reductions and is viewed as close to Trump, prompting investor concerns about Federal Reserve independence and possible pressure on the dollar.
  • Financial disclosures show Hassett holds $1 million to $5 million in Coinbase stock and received more than $50,000 for advisory work there, raising questions about potential conflicts if he leads the central bank.