On Friday evening, President Donald Trump hinted that he had made up his mind about who would become the next chairman of the Federal Reserve.
Speaking to reporters at Mar-a-Lago after attending a ceremony where a Palm Beach street was named in his honor, Trump stated, “In my mind, done.”
Earlier that day, Trump had drawn attention to Kevin Hassett during an event in the White House’s East Room. Hassett is among the two candidates Trump was considering for the Fed chair position.
Hassett had recently appeared on Fox Business Network with Maria Bartiromo, earning praise from Trump.
“I just want to thank you, you were fantastic on television today,” Trump said to Hassett, who serves as the director of the National Economic Council.
For President Trump, the ability to defend his record on cable news and possessing the right appearance, which he often describes as “central casting,” are significant factors in his decision-making process for appointments.
But in the race to replace Trump’s nemesis Jerome Powell, whose term expires in May, the president hinted that Hassett may be too good on TV to send to the independent agency.
‘I actually want to keep you where you are if you want to know the truth,’ Trump said at an event focused on healthcare.
‘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,’ the president continued. ‘I would lose you.’
Trump’s other Kevin, Kevin Warsh, also has TV experience, but Hassett has been on-air as a Trump economic adviser and in front of the White House briefing room, for both Trump terms.
Kevin Warsh (left) and Kevin Hassett (right) are two of President Donald Trump’s top picks to replace Jerome Powell as Fed chair
Kevin Hassett, the director of the White House Economic Council, has been defending President Donald Trump on the economy over two presidential terms
Warsh is a former member of the Federal Reserve Board of Governors, appointed by Republican President George W. Bush in 2006.
Trump has gone back and forth between Hassett and Warsh so much that the frontrunner ‘sort of depends on the day,’ one person familiar with the process told the Wall Street Journal.
The newspaper reported that after Warsh’s interview last month with the president, Trump was struck by his ‘acumen and good looks,’ sources familiar with the matter said.
Despite appointing Powell in November 2017, the president has been eager to see the Fed chairman out, expressing anger publicly that the Federal Reserve hasn’t done more to decrease interest rates amid Americans’ affordability concerns.
On Sunday, Powell made an eyebrow-raising public statement, announcing that the Department of Justice was investigating him and suggesting this was political retaliation for the Federal Reserve board dragging its feet on cutting interest rates.
He said the independence of the bank was at stake.
‘This is about whether the Fed will be able to continue to set interest rates based on evidence and economic conditions, or whether instead monetary policy will be directed by political pressure or intimidation,’ Powell said.
Trump has denied ordering the DOJ probe, but it appears the investigation could rattle the process of getting the president’s pick confirmed.
President Donald Trump was impressed with Kevin Warsh, a former governor of the Federal Reserve, when he sat for an interview last month. According to the Wall Street Journal, Trump liked Warsh’s ‘acumen and good looks’
Two Republican lawmakers, who are often critical of Trump, Senators Thom Tillis and Lisa Murkowski, both said they’d hold their vote until the DOJ matter is resolved.
‘I wouldn’t consider my mother for this post under the current conditions, because we’ve got to resolve this matter,’ Tillis told the Wall Street Journal. ‘It’s foundational to making decisions about the board going forward.’
Tillis also floated that the candidates perceived as being closer to Trump could now face a tougher nomination fight.
‘If you’re working alongside somebody for a while, can you really be as independent, even if you think you can be?’ Tillis mused.
In this regard, Warsh may have a firmer footing than Hassett, who has already defended the DOJ probe publicly, further concerning some senators.
But Tillis suggested that Trump should ditch a Kevin for a Chris – Fed governor Christopher Waller – another leading candidate now known for a cozy relationship with the president.
Picking Waller, Tillis said, ‘would certainly address a lot of the concerns.’
BlackRock’s Rick Rieder is also under consideration.
