Gold prices edge lower; heading for weekly losses ahead of U.S.-Russia talks
Investing.com-- White House economic advisor Kevin Hassett is an “early frontrunner” to replace Jerome Powell as the Federal Reserve chair next year, Bloomberg reported on Tuesday.
Hassett, one of President Donald Trump’s longest-serving advisors, is in the running for the position, with former Fed governor Kevin Warsh, the Bloomberg report said, citing people familiar with the process. The two are reportedly contending in an “Apprentice-like contest” for the role, run by Trump out of the White House.
An earlier report from the Wall Street Journal had also pipped Hassett as the top pick for the Fed chair role. Trump on Tuesday said Treasury Secretary Scott Bessent was a strong contender for the role, but that he liked Bessent in his current position.
Trump is expected to expedite the selection of Powell’s successor, especially as he seeks to undermine the Fed chief, who has so far not acquiesced to the president’s demands for lower interest rates.
Trump has personally insulted Powell, claiming that the Fed chair will be too late in cutting rates, which could damage the economy. Powell on the other hand has maintained that the Fed will not cut rates until the inflationary impact of Trump’s trade tariffs becomes clear.
Trump was also seen considering a $700 million cost overrun at the Fed’s renovation project as a potential avenue to fire Powell.