Kevin Hassett has emerged as the frontrunner to become the next chair of the U.S. Federal Reserve.
Predictions markets are placing the odds that Hassett becomes the next leader of the U.S. central bank at 54%. He is the clear favorite to succeed current chair Jerome Powell next year.
U.S. President Donald Trump is expected to name the current White House National Economic Council Director as chair of the Fed by the end of this year.
However, Powell’s current term as chair doesn’t end until May 2026.
Hassett is viewed as the frontrunner to succeed Powell because he agrees with Trump that interest rates should be cut quicker and deeper.
The Federal Reserve is widely expected to reduce interest rates by 25 basis points to a range of 3.50% to 3.75% at its next policy meeting on Dec. 10.
However, the benchmark Fed Funds Rate is only expected to be reduced to about 3% by the end of 2026.
President Trump in the past has said he wants interest rates closer to zero to turbocharge the U.S. economy.
