President Donald Trump cast doubt on the Federal Reserve Chair candidacy of Kevin Hassett on Friday, indicating he might prefer to keep Hassett in his existing role rather than appointing him to head the central bank.
During an event at the White House, Trump praised Hassett’s recent television appearance, emphasizing the value he places on Hassett’s communication abilities. Trump said he was concerned that moving Hassett to the Federal Reserve would mean losing this key skill. "Kevin Hassett is so good. I'm saying, 'Wait a minute, if I move him — these Fed guys, certainly the one we have now, they don’t talk much.' I would lose you. It’s a serious concern to me," Trump remarked.
Addressing Hassett directly, Trump stated, "We don’t want to lose him, Susie, but we’ll see how it all works out," referring to White House Chief of Staff Susie Wiles. This comment suggested Trump’s internal deliberation over Hassett’s potential reassignment from his role as director of the National Economic Council (NEC) to Federal Reserve Chair.
Market speculation on the Fed Chair race has rapidly shifted, as indicated by Polymarket betting data. Former Federal Reserve Governor Kevin Warsh has surged to 59% on the platform, while Hassett’s prospects have diminished sharply to 16%. Current Federal Reserve Governor Christopher Waller’s share stands at 14%.
How Hassett's Position Weakened
Kevin Hassett was once the front-runner for the Federal Reserve Chair job, largely due to his position as director of the White House NEC. However, his standing suffered a significant blow following comments he made during a CNBC interview on Monday regarding the Justice Department’s criminal investigation into current Fed Chair Jerome Powell.
In the interview, Hassett said, "If I’m here sitting in the White House and somebody says, ‘Hey, Justice Department wants to look at all your emails,’ I would welcome the opportunity to show them that I’m fine," likening the criminal probe to routine oversight.
His remarks sparked criticism from economists who deemed them inappropriate for someone expected to lead an independent central bank. Jason Furman, a former adviser under the Obama administration who previously supported Hassett's 2017 confirmation to a key economic position, described it as "sad but unsurprising to see him accepting this as an aboveboard, legitimate, independent inquiry."
Republican Senators Demand Resolution of Powell Investigation Before Confirmation
Two Republican senators, Thom Tillis of North Carolina and Lisa Murkowski of Alaska, have declared they will not support any nominee for Fed Chair until the investigation into Jerome Powell concludes.
Tillis stated bluntly, "I wouldn’t consider my mother for the post under the current conditions," signaling broad skepticism about confirming any candidate while questions about Powell’s probe remain unresolved. He also remarked that nominees with closer ties to Trump could face intensified scrutiny with regard to their independence.
As a member of the Senate Banking Committee, which oversees Federal Reserve nominations, Tillis has the means to block any potential nominee backed by Democrats, elevating his influence in the confirmation process.
Kevin Warsh Emerges as a Leading Candidate
Kevin Warsh, who served on the Federal Reserve Board from 2006 to 2011, has become the leading candidate in the race due in part to his lack of direct affiliation with the White House and its more contentious recent interactions with the Fed.
Trump reportedly was impressed by Warsh during an interview last month, praising Warsh’s "acumen and good looks," according to sources familiar with the discussions. Warsh's public silence on the Powell probe has helped keep him untainted by the controversy, preserving Trump’s confidence in him.
Christopher Waller As a Potential Compromise Choice
Christopher Waller, another Fed Governor appointed by Trump in 2020 but not closely linked to the president, also stands as a potential alternative. Observers suggest that as the confirmation process increasingly centers on the issue of Fed independence, Waller’s relative distance from Trump’s inner circle could become an asset.
Senator Tillis acknowledged that selecting Waller "would certainly address a lot of the concerns" tied to the independence of the Federal Reserve Chair.
Former liabilities linked to Waller’s limited political relationships may diminish if the priority among senators and other stakeholders is bolstering central bank credibility rather than affirming presidential loyalty.
The outcome of this contentious nomination process remains uncertain, as political and public opinions continue to evolve amid ongoing investigations and strategic considerations within the White House and Senate.
January 16, 2026
Finance
Trump Signals Support for Kevin Warsh Over Hassett in Fed Chair Race
Hassett’s Comments on Powell Probe Shake Confidence as Warsh Gains Favor
Derek Hwang
Materials & Mining Analyst
Summary
President Trump expressed hesitation about appointing Kevin Hassett as Federal Reserve Chair, citing concerns about losing a key communicator from his administration. Following Hassett’s controversial remarks defending the Justice Department’s investigation into Jerome Powell, market speculation shifted in favor of former Fed governor Kevin Warsh, who now leads polling on Polymarket. Republican senators have also raised objections to confirming any nominee before the probe concludes, creating uncertainty around the Fed leadership succession.
Key Points
President Trump expresses reluctance to move Kevin Hassett from his current White House role to Federal Reserve Chair, citing concerns about losing his communication skills.
Kevin Warsh has become the frontrunner in the Federal Reserve Chair race, reaching 59% on Polymarket, surpassing Hassett, whose standings dropped to 16%.
Hassett’s defense of the Justice Department’s investigation into Fed Chair Jerome Powell during a CNBC interview sparked criticism and diminished his candidacy.
Republican Senators Thom Tillis and Lisa Murkowski refuse to approve any Fed Chair nominee until the Powell investigation is concluded, influencing the confirmation process.
Risks
- Continued investigation into Fed Chair Jerome Powell creates uncertainty, potentially delaying or complicating the Fed Chair nomination.
- Opposition from key Republican senators may block or stall the confirmation of any nominee closely associated with President Trump.
- Public and political reaction to Hassett’s comments on the Justice Department investigation undermined his credibility as a candidate for an independent Fed Chair position.
- The Federal Reserve Chair selection process is influenced by concerns over central bank independence versus political loyalty, adding to the unpredictability of the appointment.
Disclosure
Education only / not financial advice