Trump Adviser Hassett Seen as Frontrunner to Replace Powell at the Fed – Bloomberg

Author: Ambar Warrick
Published: July 16, 2025

Introduction

Kevin Hassett, senior economic adviser to the White House, is viewed as an early favorite to replace Jerome Powell as Chair of the Federal Reserve next year, Bloomberg reported on Tuesday.

Bloomberg Reporting

According to Bloomberg, Hassett — one of Donald Trump’s longest-serving advisers — is being considered for the role alongside former Fed Governor Kevin Warsh.

Sources familiar with the process described the selection as resembling an “Apprentice-style contest” personally run by Trump from the White House, highlighting the competitive and informal nature of the vetting.

Wall Street Journal Context

An earlier report by The Wall Street Journal had also named Hassett as the leading candidate to succeed Powell.

Trump is said to be weighing multiple contenders, seeking someone who aligns with his monetary policy priorities, particularly lower interest rates.

Comments About Scott Bessent

On Tuesday, Trump mentioned that Treasury Secretary Scott Bessent is also a serious candidate for the position.

However, he expressed a preference to keep Bessent in his current Treasury role, signaling Bessent may not be moved despite being considered.

Political and Policy Context

Trump is reportedly eager to accelerate the selection process to replace Powell.

This urgency is partly due to his ongoing frustration with the Fed chair, who has so far resisted Trump’s repeated calls for lower interest rates — which Trump believes would help boost economic growth.

Trump has been openly critical of Powell, accusing him of being too slow to cut rates, something he claims could damage the economy.

For his part, Powell has maintained that the Federal Reserve will not reduce rates until there is more clarity on the inflationary impact of Trump’s tariffs and trade policies.

Additional Strategy Consideration

Bloomberg’s report also mentioned that Trump has explored the idea of using a $700 million cost overrun in the Federal Reserve’s renovation project as a potential pretext to dismiss Powell.

This strategy would seek to justify replacing the Fed chair on grounds of mismanagement or waste.

Conclusion

The race to replace Jerome Powell as Fed chair appears to be intensifying, with Trump weighing multiple loyalists and potential policy allies.

Kevin Hassett emerges as a clear frontrunner, but other candidates remain in contention as Trump continues to evaluate who would best align with his goal of securing lower interest rates and shaping monetary policy during his administration.