National Economic Council Director Hassett has become the leading candidate to take over the Federal Reserve.

According to sources familiar with the matter, as the selection process for the new Federal Reserve chairman enters its final weeks, Kevin Hassett, director of the National Economic Council, has become the leading candidate to take over the Fed, according to White House advisors and Trump's allies.

Sources who requested anonymity said that if Hassett is appointed, Trump will place a close ally he knows and trusts at the independent central bank. Some pointed out that Hassett is seen as the person who can bring Trump's interest rate-cutting philosophy to the Federal Reserve—an institution Trump has long sought to influence—and is now facing a historic turning point.

However, they also cautioned that Trump is known for his unpredictable personnel decisions, and everything remains uncertain until the official nomination is announced. White House Press Secretary Karoline Leavitt stated in a press release, "No one can predict President Trump's decisions before he takes action. Stay tuned!"

Fox News White House correspondent Edward Lawrence also stated that there is currently no frontrunner in the selection process for the next Federal Reserve Chair. A senior U.S. official confirmed that the final list of candidates has not yet been submitted to the White House.

The selection of the Federal Reserve Chairman and Governors has historically been the most direct way for a president to influence the central bank. During his first term, Trump nominated current Chairman Jerome Powell, and when Powell failed to advance interest rate cuts at the expected pace, the president deeply regretted his decision.

Hassett is highly aligned with Trump on economic policy, with both agreeing on the need for further interest rate cuts. He told Fox News on November 20 that if he were in charge of the Federal Reserve, he would "cut rates right now" because "the data supports that decision." The economist also criticized the Fed for failing to effectively control inflation in the later stages of the pandemic.

As news of Hassett's lead spread, the US Treasury market rallied, with the 10-year Treasury yield falling below 4% for the first time this month.

The Federal Reserve has long served as a "policy punching bag" for Trump, who has repeatedly criticized Powell's interest rate cuts as "significantly delayed" and has even publicly considered removing him from office. Trump has also accused the Fed of extravagant renovations at its campus, and the White House is currently embroiled in legal proceedings over Trump's attempt to dismiss Fed Governor Lisa Cook.

These pressures are now passing to Treasury Secretary Scott Bessent, who is leading the selection process—he must carefully balance supporting candidates who advocate for significant interest rate cuts while also gaining the trust of both the president and the financial markets.

After keeping interest rates unchanged for most of 2025, the Federal Reserve began cutting rates this fall, lowering the benchmark rate by 25 basis points twice in September and October. However, growing disagreements among officials regarding the outlook for inflation and the job market have made it uncertain whether further rate cuts will be made at the December policy meeting.

Bessant told CNBC on Tuesday that Trump is highly likely to announce his nominee for Federal Reserve Chair before Christmas, December 25. Trump himself has hinted that the selection process is nearing completion, stating on November 18 that he "had someone in mind," but without revealing a specific name. Back in September, Trump indicated that Hassett, former Fed official Kevin Warsh, and current governor Christopher Waller constituted the final three-person shortlist.

"President Trump deeply understood during his first term how important it is to have people who understand his governing direction in key positions such as FBI Director and Federal Reserve Chairman," former White House Press Secretary Sean Spicer admitted. "It's hard to imagine him appointing someone with whom he has a poor personal relationship to succeed Powell." (Jinshi)