In a surprising development at the White House, President Donald Trump has indicated that he would like to keep Kevin Hassett in his current position as Director of the National Economic Council. The statement has immediately shaken up expectations about who might replace Jerome Powell as the next chair of the Federal Reserve.
During a public appearance on Friday, Trump openly praised Hassett, who was present in the audience. “I see Kevin’s in the audience, and I just want to thank you. You were fantastic on television today,” the president said, acknowledging Hassett’s recent media performance.
He then added a remark that caught the attention of political and financial observers alike: Trump tells Hassett he wants him to stay in his role; Warsh’s chances for Fed chair surge. The comment suggested that Trump may prefer Hassett to remain as his top economic advisor rather than move to the Federal Reserve.
A Competitive Race for Fed Leadership
Hassett has long been viewed as one of the strongest candidates to take over the Federal Reserve once Jerome Powell’s term concludes in May. He has been competing closely with former Federal Reserve Governor Kevin Warsh, who has also emerged as a leading contender for the powerful position.
President Trump has been openly critical of Powell’s leadership in the past and has made it clear that he plans to appoint a new Fed chair when the current term ends. Along with Hassett and Warsh, the list of finalists reportedly includes current Fed Governors Christopher Waller and Michelle Bowman, making it a highly competitive selection process.
Although Trump has hinted that he will announce his choice sometime this month, he has not yet given an exact timeline for the decision.
Trump’s Public Praise Creates Uncertainty
Addressing White House Chief of Staff Susie Wiles directly, Trump added, “We don’t want to lose him, Susie, but we’ll see how it all works out.” The remark reinforced the idea that Trump values Hassett’s current role and may hesitate to move him elsewhere.
However, the president’s words also created fresh uncertainty about the direction of the Fed chair race. Markets and analysts quickly began adjusting their expectations based on Trump’s comments.
Market Reaction Favors Kevin Warsh
Shortly after Trump’s remarks, prediction markets responded dramatically. On the platform Kalshi, traders increased the probability of Warsh becoming the next Fed chair to 60 percent. Hassett’s chances dropped to just 16 percent, while Waller stood at 14 percent.
Only a few days earlier, Warsh and Hassett had been considered almost equally likely to secure the position. Trump’s public preference for keeping Hassett in his current job appears to have shifted that balance.
Financial analyst Krishna Guha of Evercore ISI noted that the situation remains fluid. “It is not certain this is a definitive signal — the President has given various signals at various times and appears to enjoy the drama of this Celebrity Apprentice season — but it does look as if the former Fed governor is for the first time the clear front-runner,” Guha explained.
Traders Adjust Expectations
Similar trends appeared on another predictions platform, Polymarket, where Warsh climbed to a 60 percent probability of being selected. Hassett fell to 15 percent, while Waller hovered around 13 percent.
The remaining finalists, Bowman and BlackRock executive Rick Rieder, were given very slim chances by traders, signaling that the race is increasingly seen as a two-man contest.
What Comes Next?
As the end of Jerome Powell’s term approaches, all eyes are now on President Trump and his final decision. While Hassett remains a trusted economic voice within the administration, Trump’s latest comments have significantly boosted confidence in Kevin Warsh’s candidacy.
For now, the future leadership of the Federal Reserve remains uncertain—but one thing is clear: the president’s public praise for Hassett has reshaped the race in unexpected ways.
