Overview
- Kevin Hassett said he and President Trump have weighed whether he should remain at the White House, noting no final decision has been made.
- Trump publicly suggested last week that he wants to keep Hassett at the National Economic Council, effectively sidelining him from the Fed chair shortlist.
- Former Fed governor Kevin Warsh is being viewed by some observers as the leading contender, while BlackRock’s Rick Rieder has gained late momentum as potentially more confirmable.
- The Justice Department’s criminal investigation into the Fed’s headquarters renovation has drawn pushback from Jerome Powell and prompted warnings of tougher scrutiny from senators, with two Republicans reported to threaten a block.
- Trump has signaled he expects loyalty from his pick and favors much lower interest rates, as Powell’s term ends on May 15 and the search continues without a final choice.