Kevin Hassett and the Federal Reserve chair: a likely appointment?

KEVIN Hassett has emerged as the overwhelming favourite to become the next Federal Reserve chair when Jerome Powell’s term expires in May 2026. US President Donald Trump indicated that he knows whom he will select but has declined to announce publicly, stating that the announcement will come in early 2026.

Prediction markets now give Hassett an 80 to 86 per cent chance of receiving the nomination – a dramatic increase following Bloomberg’s late November report that identified him as the frontrunner.

Several factors point to Hassett as the probable nominee. As director of the National Economic Council, Hassett has regular access to Trump and has built a relationship of trust throughout the administration. This proximity matters significantly in high-level appointments, particularly for positions the president considers strategically important.