Who after Jerome Powell? Two Kevins heat up US Fed chair race— one from Trump’s inner circle

Two Republicans named Kevin are vying to succeed Jerome Powell as the next chairman of the US Federal Reserve, in what is becoming a high-stakes political contest shaped by President Donald Trump’s preferences.

Kevin Hassett, a longtime Trump economic adviser, is gaining traction as a serious contender, according to people familiar with the matter. His emergence has cast doubt over the chances of Kevin Warsh, a former Fed governor once considered a frontrunner for the job. Warsh’s lack of ties to Trump’s inner circle and his more cautious approach to rate cuts are raising concerns among the former president’s advisers.

The contest, Wall Street Journal cited insiders as saying, mirrors the boardroom intrigue Trump once popularised on “The Apprentice,” as both men manoeuvre for influence and proximity to the former president’s economic agenda.

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Hassett rises within Trump’s circle

Hassett, 63, is a Ph.D. economist who worked at the Fed in the 1990s and later became a key figure in Trump’s economic team. After two stints in the Trump administration, he joined a private-equity firm founded by Trump’s son-in-law, Jared Kushner.

Although Hassett had previously shown little interest in the Fed chairmanship, he has now changed his stance. He met with Trump at least twice in June to discuss the position, sources said, and has since become a vocal critic of Powell’s leadership.

In a June television interview, Hassett accused Powell of aligning with Democrats, claiming that “Jay Powell is the person who cut rates right ahead of the election to help Kamala Harris” and is “doing whatever it is that Elizabeth Warren wants.”

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White House spokesman Kush Desai said, “President Trump has been clear about the need for the Federal Reserve’s monetary policy to complement the Administration’s pro-growth agenda,” adding that Trump “will continue to nominate the most qualified individuals who can best serve the American people.”

Warsh battles outsider status

Warsh, 55, has been preparing for a return to the Fed for years. He interviewed with Trump in the past for the Treasury Secretary post but used the opportunity to advocate for the Fed job. A former adviser to President George W. Bush, Warsh was an early critic of Trump’s trade policies, warning in 2018 that “tariffs and trade restrictions the world over” would harm the US economy.

Warsh is now adjusting his policy tone, suggesting that the Fed could lower interest rates if it reduced its balance sheet of $6.2 trillion in Treasuries and mortgage-backed securities.

Despite his elite background and ties to establishment Republicans like Paul Ryan, Warsh has struggled to win over Trump loyalists. He is married to the daughter of billionaire Ronald Lauder, a longtime Trump acquaintance, but remains on the outside of Trump’s core advisory network.

Still, his telegenic longstanding friendship with current Treasury Secretary Scott Bessent could work in his favour.

Bessent himself is a potential wildcard. Trump has floated the idea of him serving as both Treasury Secretary and Fed chair, though it remains unclear if the suggestion was serious.

Great expectations

Trump has said recently that he expects the next Fed chair to pursue interest rate cuts, a more explicit demand than when he elevated Powell to the role in 2018.

The White House is also said to be considering placing Hassett on the Fed board early next year, when a seat becomes vacant. That move would give Trump flexibility to later decide whether to elevate Hassett or Chris Waller, a current Fed governor appointed by Trump, to the top post when Powell’s term ends in May.