The White House cancels the original interview process! New Federal Reserve Chairman Hassett is "about to emerge"

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Trump's sudden cancellation of the scheduled interviews for Federal Reserve chair candidates this week suggests that the choice for this key position has actually been made, and Kevin Hassett, who has long served as Trump's economic advisor, is "emerging as the frontrunner."

On Wednesday, according to the latest report by Nick Timiraos, known as the "new Fed correspondent," the Trump team notified candidates that their scheduled Wednesday interview with Vice President Vance had been cancelled. Sources revealed that the team did not state a reason for the cancellation, nor is it certain whether the meeting will be rescheduled; the White House responded only with "scheduling conflicts." According to Timiraos' earlier report, although interviews for the Fed chair are still ongoing, Trump seems to have already decided that Hassett will take the position.

Recently, Trump has repeatedly sent clear signals that "Hassett" is almost set to be the next Fed chair. On Sunday, Trump told reporters, "I know who I'm going to choose." When asked if it was Hassett, he simply smiled without answering. But at a Tuesday cabinet meeting, Trump made it clear that the candidates list had been "narrowed down to one." In a later event, facing Hassett who was present, he directly referred to him as the "potential Fed chair."

This statement basically ended the carefully designed interview process by senior advisors. Treasury Secretary Bessent had previously screened eleven initial candidates down to five, and had planned to continue interviews this week to recommend a final list to the president. Now, this procedure has been "cancelled" by Trump himself.

A Carefully Designed Process Reduced to Formality

Hassett, widely viewed as the frontrunner, was also scheduled to meet with Vance and White House officials. Other shortlisted candidates included former Fed Governor Kevin Warsh and current Governor Christopher Waller.

Nick Timiraos reported that, at the Tuesday cabinet meeting, Trump said, "We may have looked at 10" candidates, but "it’s narrowed to one person." He made it clear that he was not interested in completing the interview process initiated by Bessent.

The White House stated, "No one knows who the next Fed chair will be until the President himself announces it. Everything prior is pure speculation." But Trump’s public remarks have undermined the credibility of that statement.

Sources said that, in theory, Trump could still change his mind and not nominate Hassett, but unless Bessent intervenes, this is unlikely. Trump has repeatedly asked Bessent to accept the position himself, but the latter has politely declined.

Trump told reporters on Sunday, "I know who I'm going to choose." When asked if it was Hassett, he merely smiled. According to "new Fed correspondent" and Wall Street Journal journalist Nick Timiraos, Hassett meets the president's two key criteria: loyalty and credibility in the markets. Trump indicated he would not announce the final pick until early next year.

The Successor Faces a Divided Decision-Making Environment

This appointment is considered one of the most important decisions of Trump’s second term. Current chair Powell’s term will end in mid-May, and his successor will inherit a rate-setting committee deeply divided over policy direction.

The Fed currently needs to balance the risks of a slowing job market and persistent inflation; the former requires rate cuts while the latter may warrant hikes. Trump’s changes to trade and immigration policies have exacerbated these policy splits, and the new chairman will also face pressure from the president himself to cut interest rates.

According to media reports citing insiders, Trump has repeatedly expressed to aides and allies that he regrets choosing Powell as Fed chair, and blames former Treasury Secretary Mnuchin for persuading him to make that choice.

For Bessent, taking a tough stance on the candidate issue carries risks. If Trump is dissatisfied with the recommended choice, Bessent would have to bear the responsibility.

In a book published in 2021, Hassett recalled, "Because Mnuchin once suggested Powell for the Fed post, from that time on, he was almost always berated by the president at the start of every meeting for making that recommendation. I will always remember how composed Mnuchin was under fire." This account may also explain why Bessent has remained cautious on this selection.

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