Trump reluctant to move Kevin Hassett to Federal Reserve: 'We don't want to lose him'

WASHINGTON, DC: President Donald Trump cast doubt on whether he would nominate National Economic Council (NEC) Director Kevin Hassett to chair the Federal Reserve, saying on Friday, January 16, that he was reluctant to lose one of his most effective advisers.

Speaking during a White House health care event on Friday, January 16, Trump praised Hassett’s performance and suggested that keeping him inside the West Wing might outweigh moving him to the central bank.

The comments signaled a potential shift in the president’s thinking as he prepared to name a nominee for one of the most powerful economic posts in government.

Reluctant to lose top adviser

“You were fantastic on television today,” Trump told Hassett during the event. “I actually want to keep you where you are, if you want to know the truth.”

Trump expanded on his hesitation by contrasting the visibility of White House aides with the low-profile nature of Federal Reserve leadership.

“Kevin Hassett is so good. I’m saying, ‘Wait a minute. If I move him, these Fed guys - certainly the one we have now - they don’t talk much. I would lose you.’ It’s a serious concern to me,” Trump said.

Turning to Chief of Staff Susie Wiles, the president added, “We don’t want to lose him, Susie.”

Fixture of Trump's economic team 

Kevin Hassett was a central figure in Trump’s economic team since his first term, when he served as chair of the Council of Economic Advisers. He returned to the administration this year as director of the National Economic Council.

His role as a prominent defender of Trump’s economic agenda had positioned him as a leading contender for the Fed chairmanship. The president’s remarks suggested that the same visibility and effectiveness that elevated Hassett’s profile may now be keeping him in place.

Kevin Warsh may now be favorite 

Trump had repeatedly said that he would announce his Fed nominee soon. Until recently, Hassett and former Federal Reserve Governor Kevin Warsh were widely viewed as the top candidates.

By publicly questioning whether he can afford to move Hassett, Trump fueled speculation that Warsh or another contender could emerge as the frontrunner. The president’s comments marked the clearest signal yet that the race might be shifting.

Federal Reserve faces major legal hurdles 

The decision came as the Federal Reserve faced mounting legal pressure. The Supreme Court was set to hear arguments next week in a lawsuit filed by Fed Governor Lisa Cook after Trump announced last year that he was removing her.

At the same time, the Fed was under criminal scrutiny over renovations to its Washington headquarters, including questions surrounding Chair Jerome Powell’s testimony to the Senate Banking Committee about the project.