Trump says he wants to keep Hassett in White House, clouding Fed chair selection

WASHINGTON -- President Donald Trump on Friday said he would like to keep his top economic adviser, Kevin Hassett, at the White House rather than potentially nominate him to replace Jerome Powell as chair of the Federal Reserve.“I actually want to keep you where you are, if you want to know the truth,” Trump said at a White House event, when he saw Hassett, director of the National Economic Council, in the audience.

”I just want to thank you, you were fantastic on television the other day.”Trump's comments, while not clearly definitive, have upended expectations around the extensive search the White House has undergone to find a new Fed chair, one of the most powerful financial positions in the world.The president's remarks have boosted the prospects for Kevin Warsh, a former Fed governor and already a top contender for the position.Hassett has generally been seen as the front-runner in the race to replace Powell because he has worked for Trump since his first presidential term.

Last month, Trump referred to Hassett as a “potential Fed chair.”Powell’s term as chair will end May 15, though he could take the unusual step of remaining on the board as governor afterward.Trump appointed Powell in 2018 but soon soured on him for raising the Fed's key interest rate that year.Warsh's candidacy has also likely been boosted by the Justice Department's subpoenas of the Federal Reserve last week, revealed Sunday in an unusually direct video statement by Powell.

The Fed chair charged that the subpoenas were essentially punishment for the central bank's refusal to lower interest rates as sharply as Trump would like.Popular ReadsMinneapolis ICE shooting live updates: Fed probe for mayor, governor, officials sayJan 16, 9:53 PMMajority of Americans say ICE agent’s shooting of Good was unjustified, inappropriateJan 15, 5:21 PMState Department warns US citizens to leave VenezuelaJan 11, 10:28 PMThe criminal investigation — a first for a sitting Fed chair — spar...