President Trump abruptly canceled scheduled interviews for Federal Reserve chair candidates this week, signaling that the selection for this key position is effectively finalized, with longtime Trump economic advisor Kevin Hassett "all but confirmed."
On Wednesday, Nick Timiraos, known as the "new Fed whisperer," reported that the Trump team informed candidates that interviews scheduled for Wednesday with Vice President Vance had been canceled. Sources familiar with the matter said the team did not provide a reason for the cancellation, nor was it clear if the meetings would be rescheduled. The White House only cited "scheduling conflicts" in response. According to Timiraos' earlier report, while interviews for Fed chair candidates were still ongoing, Trump appeared to have internally decided on Hassett for the role.
Recent unambiguous signals from Trump suggest Hassett's appointment is nearly certain. On Sunday, Trump told reporters, "I know who I'm picking," but only smiled when asked if it was Hassett. During Tuesday's cabinet meeting, Trump explicitly stated the candidate list had been "narrowed down to one person." Later at an event, he directly referred to Hassett—who was present—as the "potential Fed chair."
This move effectively terminated a carefully orchestrated interview process led by senior advisors. Treasury Secretary Besant had previously narrowed the initial list of 11 candidates to five, with plans to conduct further interviews this week before presenting a final recommendation to the president—a procedure now "canceled" by Trump himself.
**Orchestrated Process Rendered Moot**
Hassett, widely seen as the frontrunner, was originally included in the list to meet with Vance and White House officials. Other finalists included former Fed Governor Kevin Warsh and current Governor Christopher Waller.
Timiraos reported that during Tuesday's cabinet meeting, Trump said, "We probably looked at 10" candidates but had "narrowed it down to one." He made clear he had no interest in completing the interview process initiated by Besant.
The White House stated, "No one knows the president's pick for the next Fed chair until he announces it himself. Everything before that is pure speculation." However, Trump's public remarks have undermined this claim.
Sources indicate Trump could theoretically still change his mind and not nominate Hassett, but this is unlikely unless Besant intervenes. Trump has repeatedly asked Besant to take the position himself, but the Treasury Secretary has declined.
**Successor to Face Divided Policy Environment**
This appointment is considered one of the most consequential decisions of Trump's second term. Current Chair Powell's term ends in mid-May, and his successor will inherit a rate-setting committee deeply divided on policy direction.
The Fed must now balance risks between a slowing labor market (requiring rate cuts) and persistent inflation (potentially needing hikes). Trump's trade and immigration policy shifts have exacerbated these divisions, while the new chair will also face pressure from the president himself to lower rates.
Media reports citing sources reveal Trump has repeatedly told aides and allies he regrets selecting Powell as Fed chair, blaming former Treasury Secretary Mnuchin for persuading him into the decision.
For Besant, taking a firm stance on the selection carries risks. Should Trump be dissatisfied with his recommendation, the Treasury Secretary would bear responsibility.
In a 2021 book, Hassett recalled: "Because Mnuchin had proposed Powell for the Fed role, he endured the president's reprimands at nearly every meeting afterward. I'll always remember how composed Mnuchin remained under fire." This account may explain Besant's cautious approach in the current selection process.
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