(Bloomberg) - White House economic adviser Kevin Hassett said President Donald Trump may well keep him in his current job, which would eliminate him from contention for the next Federal Reserve chair.
“From the beginning, he and I have talked about whether it’s better for me to be here in the West Wing or over at the Fed,” Hassett said on Fox News. “I don’t think he’s made a final call on that.”
Trump expressed reluctance last week about nominating Hassett as the successor to current Fed Chair Jerome Powell, telling the National Economic Council director during a White House event that “I actually want to keep you where you are, if you want to know the truth.”
Hassett had once been seen as the frontrunner head the central bank, along with Fed Governor Christopher Waller, former governor Kevin Warsh and BlackRock Inc. executive Rick Rieder. But it’s now seen as a four-horse race, while Rieder’s candidacy has recently gained late momentum, according to people familiar with the matter, as some believe him potentially easier to win Senate confirmation.
A criminal probe targeting the Fed and Powell over remodeling of the central bank’s headquarters sparked a wave of backlash. Powell accused the Justice Department of launching the investigation to pressure the central bank into cutting rates, and key lawmakers including Senate Banking Committee member Thom Tillis warned that Trump’s nominees will be scrutinized more closely.
“There are a lot of great candidates, and it could well be that the president’s right to make the decision that this is the best place for me right now,” Hassett said Sunday, referring to the White House. He said he was “humbled and gratified” by Trump’s comment about his future, saying the president is “such a good guy.”
Jerome Powell’s term as head of the central bank ends on May 15. The search process is being led by Bessent, who Trump has said removed himself from consideration for the role.
By María Paula Mijares Torres
With assistance from Josh Wingrove
