Kevin Hassett, the Director of the National Economic Council, addressed the media outside the White House in Washington, D.C., on Friday, October 24, 2025. As President Donald Trump keeps his choice for the next Federal Reserve chair under wraps, speculation runs high about the potential candidates for the position.
According to prediction markets, Hassett is a top contender, bolstered by a recent Bloomberg News report that outlined the five-person race to succeed current Chair Jerome Powell, whose term ends next May. While aboard Air Force One, President Trump stated, "I know who I am going to pick, yeah. We'll be announcing it," but refused to give away any hints, even when asked about Hassett specifically.
Hassett joined weekend talk shows, sidestepping questions about his candidacy but acknowledging the positive market response to his potential appointment. On CBS' "Face the Nation," he expressed gratitude to be among strong candidates and suggested Americans could expect the new chair to facilitate cheaper car loans and easier access to mortgages at lower rates. On Fox News, he remarked, "If [Trump] picks me, I'd be happy to serve." Prediction markets have responded enthusiastically, with Kalshi traders assigning a 79% probability of his selection.
The future Fed chair will inherit a Federal Reserve divided on interest rate policies. With upcoming decisions, such as the one on December 10 where traders are predicting an 87.6% chance of a rate cut, the Fed's direction remains uncertain. The ongoing debate pits officials favoring rate cuts to protect the labor market against those who believe inflation is a pressing concern. Trump's administration has emphasized their preference for lower rates as a criterion for the new chair.
In 2026, the composition of the Federal Open Market Committee (FOMC) will feature a hawkish inclination amongst regional presidents who will lean towards combating inflation and resist lowering rates. Meanwhile, Treasury Secretary Scott Bessent, appointed by Trump to spearhead the Fed chair search, echoed Trump's sentiment in a CNBC interview, calling for a reevaluation of the Fed’s mission beyond mere rate adjustments.
Bessent pointed to the role of regional presidents, whose public statements have been known to impact markets, as part of the broader discussion on the Fed's extensive influence over the economy, particularly following the financial sector's evolution. Bessent emphasized the need for reform amidst what he described as an increasingly complex landscape of monetary policy.