Washington insiders report that Kevin Hassett, the White House economic adviser best known for smiling through every forecast, has quietly vaulted to the front of President Trump’s shortlist to become the next Federal Reserve chairman—a move that would place a reliable rate-cutting enthusiast at the helm of the world’s most powerful central bank.
Bond traders celebrated the rumor with the kind of fervor usually reserved for free doughnuts, sending the 10-year Treasury yield tumbling below 4% for the first time in a month. Mortgage brokers reportedly began printing “Welcome Back, Cheap Money” banners while quietly wondering if their printers still worked after years of disuse.
Markets appear to have decided that a Hassett Fed would treat interest rates the way airlines treat legroom: something to eliminate at the earliest opportunity. Investors, suddenly optimistic that borrowing costs might actually reflect the president’s mood, pushed stock futures higher and sent champagne corks popping in trading floors from New York to Chicago.
Kevin Hassett has told Fox News he would accept the Fed chair job faster than a Black Friday shopper grabs a discounted television. “I want to serve my country and I want to serve my president,” he declared, somehow keeping a straight face while essentially auditioning in prime time.
The president, for his part, has already soured on his previous Fed pick, Jerome Powell, after Powell refused to cut rates on the presidential timeline—roughly translated as “immediately and often.” Trump’s public complaints about Powell being “too late” have become a Washington staple, right up there with overpriced lobbyist coffee.
Insiders note that Hassett’s economic philosophy aligns neatly with Trump’s preference for lower rates, lower rates, and, when possible, even lower rates. On November 20, Hassett announced he would already be cutting rates “right now” if he ran the Fed, prompting some to wonder whether he keeps a secret red button under his desk labeled “Cheaper Money.”
Treasury Secretary Scott Bessent now finds himself in the delicate position of shopping for a central banker who can satisfy both a president who treats the Fed like a personal ATM and financial markets that still pretend independence matters. It’s rather like hiring a vegan chef for a barbecue restaurant.
White House Press Secretary Karoline Leavitt offered the administration’s now-patented response: “Nobody actually knows what President Trump will do until he does it. Stay tuned!” Translation: place your bets, but don’t blame us when the wheel stops somewhere unexpected.
Former press secretary Sean Spicer weighed in helpfully, noting that Trump learned in his first term how vital it is to install loyal allies in powerful jobs. Observers quietly noted that Spicer himself no longer holds one of those jobs, perhaps proving the point.
The Fed, meanwhile, has spent years politely absorbing presidential criticism the way a punching bag absorbs fists. From public musings about firing Jerome Powell to ongoing litigation over the attempted dismissal of Governor Lisa Cook, the central bank has upgraded its emotional support animal budget accordingly.
Trump himself teased on November 18 that he already knows his choice, delivering the line with the dramatic timing of a reality-show host revealing the final rose. The shortlist, he previously said, includes Hassett, Kevin Warsh, and Christopher Waller—three men whose names all sound like law firms that specialize in lowering your borrowing costs.
With the December meeting looming and Fed officials openly bickering about inflation like relatives arguing over Thanksgiving turkey, markets are pricing in a Hassett nomination the way teenagers price in parental leniency: optimistically and often incorrectly.
One thing remains certain: whenever Trump does announce his pick, at least half the country will declare it the best decision ever while the other half schedules an emergency therapy session. Such is the magic of central-bank appointments in the modern era.
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