Trump praises Hassett but hesitates to name him as Fed chair

President Trump on Friday expressed hesitation in naming Kevin A. Hassett, the director of the White House’s National Economic Council, to lead the Federal Reserve, speaking at a health care event at the White House. He praised Hassett’s work in defending the administration’s economic agenda on television, saying, "I actually want to keep you where you are, if you want to know the truth," and adding, "I would lose you.

It’s a serious concern to me." Hassett is considered a front-runner to replace Jerome H. Powell, but the search was shaken after the Justice Department served the Fed with grand jury subpoenas related to a $2.5 billion renovation of the central bank’s headquarters. After the investigation was revealed, Powell released a video accusing the Trump administration of using the threat of criminal charges to pressure the Fed into lower interest rates; Mr.

Trump has pushed for significantly lower borrowing costs. Lawmakers, former Fed chairs and others rushed to Powell’s defense, and Republicans have shown concern. Senator Thom Tillis said he would oppose confirmation of any nominee "until this legal matter is fully resolved," and as a member of the Senate Banking Committee he could block a nominee from advancing to a full Senate vote.

Hassett has faced questions about his credibility to lead an institution meant to be independent, given his role as both a leading policy adviser and a frequent television spokesman for the president.

Key Topics

Politics, Kevin Hassett, Donald Trump, Federal Reserve, Jerome Powell, Justice Department