Fed Chair Race Takes Unexpected Turn: Hassett Hints at Exit, Warsh's Odsoar

Odaily According to White House economic adviser Kevin Hassett, Trump is likely to keep him in his current position, which would remove him from contention for the next Federal Reserve Chair.

Last week, Trump expressed reservations about nominating Hassett to succeed current Fed Chair Jerome Powell. During an event at the White House, he told the director of the National Economic Council, "To be honest, I actually want you to stay where you are."

Hassett was once considered one of the frontrunners alongside Fed Governor Christopher Waller, former Governor Kevin Warsh, and BlackRock executive Rick Rieder. According to informed sources, this is currently seen as a four-person race, with Rieder's candidacy gaining late momentum recently as some believe he may have a better chance of securing confirmation from the U.S. Senate.

Following Trump's remarks, traders on the prediction market site Kalshi raised the probability of Warsh getting the job to 60%, while Hassett and Waller's chances were only 16% and 14%, respectively. Traders on Polymarket showed a similar dynamic, with Warsh at 60%, Hassett at 15%, and Waller at 13%. Previously, Warsh and Hassett's odds were neck and neck.

Powell's term as Fed Chair ends on May 15. The selection process is led by Besant.

"There are many excellent candidates, and the President will likely make the right decision that my best place is here [at the White House] for now," Hassett said last Sunday regarding the White House.

He said he felt "flattered and grateful" for Trump's comments about his future, calling the President "a really good guy."

Trump stated he would appoint Powell's successor this month but did not provide a specific date. (Jin10)