Hassett Indicates He Will Remain at White House Over Fed; Rick Rieder Emerges as Leading Candidate

Response to Trump's "I want you to stay" remark
Bloomberg: "Rick Rieder of BlackRock seen as leading candidate"

Kevin Hassett, Chairman of the White House National Economic Council (NEC) and a close aide to President Donald Trump, who had been considered a leading candidate for the next Chair of the U.S. Federal Reserve (Fed), has declined the position. He stated that he intends to remain at the White House.

In an interview with Fox News on the 18th (local time), Hassett said, "From the very beginning, I have discussed with him (President Trump) whether it would be better for me to be in the West Wing of the White House or at the Fed," explaining his decision. He added, however, "It seems President Trump has not yet made a final decision."

Kevin Hassett, Chairman of the White House National Economic Council (NEC). Photo by Reuters Yonhap News

This appears to be in response to President Trump's remarks on the 16th. At that time, President Trump expressed reluctance to nominate Hassett as the next Fed Chair. He told Hassett, "If you want to know the truth, I want you to stay in your current position (NEC Chairman)." He also mentioned that he had a specific candidate in mind but did not disclose a name. Hassett had been considered a strong contender for the next Fed Chair along with Christopher Waller, Fed Governor; Kevin Warsh, former Fed Governor; and Rick Rieder, Chief Investment Officer (CIO) of Fixed Income at BlackRock.

Bloomberg News, citing sources familiar with the matter, reported that CIO Rieder is currently being considered a leading candidate. Some observers believe he is in the most favorable position to secure Senate confirmation. CIO Rieder had his final interview with President Trump on the 15th.

The current term of Chair Jerome Powell runs until May. President Trump has repeatedly criticized Powell publicly for not complying with his calls for interest rate cuts. The Department of Justice is also putting strong pressure on Powell by investigating him over the costs of renovating the Fed headquarters.

Hassett stated, "There are many excellent candidates, and at this point, I believe it is the President's prerogative to decide where I would be best suited."

Meanwhile, on the same day, U.S. Treasury Secretary Scott Bessent commented on the Democratic Party's plans to block Senate confirmation of the next Fed Chair nominee in connection with the Justice Department investigation, saying, "We have four outstanding candidates," and "I believe the Senate will be satisfied with whichever of the four is chosen."