Hassett will stay in White House job if not chosen for Fed chair

Audio By Carbonatix

Enlarge

WASHINGTON (Reuters) -White House economic adviser Kevin Hassett said on Wednesday that he would be able to get to work quickly as Federal Reserve chair due to his experience at the U.S. central bank, but would stay in his current job if President Donald Trump chooses another candidate.

“For me, I think that being director of the National Economic Council is my dream job, and if the president asked me to be Fed chair, then of course I’ll do it,” Hassett told the Economic Club of Washington. “But if I’m not Fed chair, don’t be disappointed for me, because I love the job that I have right now, and I’m so honored to be able to work for the president today.”

Hassett, who served previously as a senior economist at the Fed, said he has not discussed with Trump the timing for a decision on the Fed chair, but said that strategy surrounding a potentially difficult U.S. Senate confirmation of the nominee would be a factor.

Delaying the announcement until May 2026, when current Fed Chair Jay Powell’s term ends, could create “a long period of confirmation struggles that can be pretty ugly,” Hassett said. “So, I don’t know what the optimal time is, but I would guess that as soon as you do it, then the sort of confirmation turmoil will begin.”

Hassett, who said he favors a faster reduction in interest rates that is also advocated by Trump, would be certain to get strong scrutiny from Senate Democrats over his commitment to Fed independence.

But Hassett said he would be able to work efficiently at the Fed from the start, due in part to his experience as an economist for the Federal Reserve Board in the 1990s.

“I don’t want to compare to others, but I would say that the reason why I could be ready to get to work right away is that I spent five years working at the Fed. I know a lot of the economists that are leading the divisions there,” Hassett said.

(Reporting by David Lawder; Editing by Leslie Adler)