Kevin Hassett, the front-runner to be the next Fed chairman

Kevin Hassett emerges as the leading candidate for Fed chairman, boosting market hopes for aggressive interest rate cuts and boosting confidence in growth policy.

December 8, 2568 – Amid close scrutiny of US monetary policy, Bloomberg reports that Kevin Hassett, Director of the Federal Economic Council, has once again emerged as a leading candidate for the new Federal Reserve chairman.

After reports emerged that markets were reacting positively to the possibility of Hassett succeeding Jerome Powell, whose term ends in 2026, Hassett's policy alignment with the government and his pro-active stance on interest rate cuts have led to him being seen as the man to usher in a new era of stimulating economic growth. Meanwhile, markets are debating the central bank's independence and its impact on long-term economic stability.

Mr. Thanarat Pasawong, Chief Executive Officer of Hua Seng Heng Group, stated that Kevin Hassett, or Dr. Kevin Allen Hassett, is not a newcomer to the US economic scene but has extensive experience.

• A highly regarded conservative economist, he has worked at the Federal Reserve and Columbia Business School, and has been an advisor to George W. Bush, Mitt Romney, and even legendary former Fed Chairman Alan Greenspan.
• He has research and teaching experience at leading economic institutions, including the American Enterprise Institute. 
• Graduated with a Ph.D. degree from the University of Pennsylvania
• He served as Chairman of the Council of Economic Advisers (CEA) from 2017–2019 during the first Trump administration.
• In 2025, he returned to serve as Director of the National Economic Council (NEC) in the second Trump administration.
  

While Hassett previously denied any confirmation of the Fed chairmanship in an interview with CBS News, he said, the market responded positively to the rumors, seeing signs that Trump was getting closer to being chosen. Hassett has previously noted that the Fed's interest rate policy may be influenced by politics, stating that the Fed raised rates during the passage of the tax cuts but cut them before the 2024 presidential election, suggesting political leverage was involved in the decision-making process.

Policy positions consistent with the White House

Analysts say Hassett aligns clearly with Trump in many areas, including tax cuts, deregulation, and a stance supporting economic stimulus. Hassett is one of those calling for the Fed to cut interest rates more aggressively, arguing that the 0.50% cut in December was necessary to support the current economic climate. Furthermore, Hassett is one of the economists who consistently criticizes Powell's approach to raising interest rates, stating that recent rate hikes are hindering U.S. economic growth.

Concerns over the Fed's independence

While Hassett has the support of the administration, many question his independence in the job, as the Fed is the "mastermind of the global economy." A 0.25% interest rate move could shake global stock markets and have an immediate impact on businesses. Many US media outlets have reported in the same vein that Hassett's closeness to Trump could put the Fed under pressure to maintain a policy of too low interest rates in the long run, potentially threatening economic stability. 

• The Washington Post warns that the Fed may hesitate to raise interest rates even if necessary.
• Business Insider reports that politics may be interfering with the Fed's policy decisions.
• Chicago Fed President Austan Goolsbee said that if politics plays too big a role, the US could be heading towards "higher inflation and higher unemployment."

Hassett remains on the shortlist, along with former hawkish Fed Governor Kevin Warsh and current Fed Governor Christopher Waller, and Trump could announce the new Fed chair later this December as a Christmas present to everyone, according to US Treasury Secretary Scott Bessant. 

Dot Plot 2026: The next deciding factor for gold's direction

While the market is focused on the Fed meeting this December, with expectations that the US central bank will cut interest rates by another 0.25%, the third cut this year, for investors, just as important as the interest rate numbers is the dot plot, or chart that indicates the Fed board's view on the interest rate trend in the coming year.

September data suggests the Fed may cut interest rates only once a year in 2026–2027, a gradual pace of cuts. However, markets are watching closely to see if this new dot plot signals a faster or larger rate cut than previously anticipated.

If the dot plot indicates a faster pace of rate cuts, this would be positive for gold prices, as increased liquidity weakens the dollar and stimulates demand for safe-haven assets. Conversely, if the Fed signals that rate cuts need to be postponed or reduced in number, gold prices could be pressured in the short term, even though the longer-term outlook remains supported by geopolitical risks and a still-unrecovered global economy. 

Overall, the 2026 dot plot is an important factor for investors to closely monitor, as it has a greater influence on the direction of gold prices than previously anticipated, Thanarat concluded.

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