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

'If I move him, these Fed guys - certainly the one we have now - they don't talk much. I would lose you' Donald Trump said about Kevin Hassett

BY SWATI SAKSHI MISHRA

UPDATED JAN 16, 2026

Donald Trump hesitated on moving National Economic Council Director Kevin Hassett to the position of Federal Reserve chair, praising his White House visibility as more valuable than a Fed role (Getty Images)

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

Trump: Kevin's in the audience. ... I actually want to keep you where you are, if you want to know the truth. Kevin Hassett is so good. I'm saying, wait a minute, if I move him, these Fed guys, certainly the one we have, they don't talk much. I would lose you pic.twitter.com/YYIByJMNva
— Acyn (@Acyn) January 16, 2026

“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

Director of the National Economic Council Kevin Hassett looks on as U.S. President Donald Trump announces plans for the 2026 G20 summit during a press availability in the Oval Office of the White House on September 05, 2025 in Washington, DC. President Trump detailed his administration's plans to host the 2026 Group of 20 summit of world leaders at his golf course and spa in Doral, Florida. (Photo by Kevin Dietsch/Getty Images) — Kevin Hassett served as chair of the Council of Economic Advisers in the first term and is now considered too valuable to move to the Fed (Kevin Dietsch/Getty Images)

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

Jon Hilsenrath, Author, chats with Adam Posen, President, Peterson Institute, Kevin Warsh, Former Member, Federal Reserve Board of Governors; and Karen Karniol-Tambour, Co-CIO, Bridgewater at The Semafor 2024 World Economy Summit on April 18, 2024 in Washington, DC. (Photo by Tasos Katopodis/Getty Images for Semafor) — With Kevin Hassett potentially staying put, former Fed governor Kevin Warsh emerged as the leading candidate for the chairmanship (Tasos Katopodis/Getty Images for Semafor)

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

ARLINGTON, VIRGINIA - APRIL 04: Federal Reserve Chairman Jerome Powell speaks during a Society for Advancing Business Editing and Writing (SABEW) Annual Conference on April 04, 2025 in Arlington, Virginia. Powell spoke to participants at the conference about economic outlook regarding interest rates and U.S. President Donald Trump's recent tariffs. (Photo by Anna Moneymaker/Getty Images) — Federal Reserve Chairman Jerome Powell speaks during a Society for Advancing Business Editing and Writing (SABEW) Annual Conference on April 4, 2025, in Arlington, Virginia (Anna Moneymaker/Getty Images)

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.