Hassett’s loyalty to Trump became a liability as Warsh is named Fed nominee

Kevin A. Hassett, long viewed as a front-runner to lead the Federal Reserve, lost out on Friday when President Trump named Kevin M. Warsh as his Fed nominee, and Mr. Hassett will remain director of the National Economic Council, The New York Times reported. Mr. Hassett’s close ties to Mr.

Trump, once an asset, became a liability during the vetting process as questions mounted about whether he could maintain the Fed’s independence from political pressure. Offering his first public comments on the decision, Mr. Hassett thanked Mr. Trump on CNBC and called Mr. Warsh a “great choice.” He said the timeline for the decision included concerns about who would lead the N.E.C.

if he left, and quoted the president as saying, “Well you didn’t ask me for the job, you never asked me for the job.” Remaining at the White House, Mr. Hassett said he would continue to push the administration’s agenda and predicted a surge in growth this year, briefly teasing “possible tax legislation” and heralding an investment boom.

He has frequently defended the president’s trade and immigration policies on television, insisting tariffs were not inflationary and that deportations would benefit the labor market, the report said. The episode highlighted long-running tensions over the Fed’s autonomy. The article noted that Mr.

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