• Former White House economic adviser Kevin Hassett has publicly stated his readiness to join the Federal Reserve, highlighting his monetary policy experience
  • The declaration comes as the central bank faces significant leadership changes, including the departure of Vice Chair for Supervision Michael S. Barr in February 2025
  • The Fed is undergoing substantial restructuring, including plans to reduce its supervision division workforce by approximately 30% and refocus on "material risks"

Kevin Hassett, who previously chaired the White House Council of Economic Advisers, has positioned himself as a potential candidate for a Federal Reserve role, telling colleagues he "could be ready to work right away" given his extensive experience with monetary policy matters. The public declaration comes during a period of unprecedented political pressure on the central bank's leadership and direction.

Hassett's comments arrive as the Fed navigates multiple vacancies and organizational changes. Vice Chair for Supervision Michael S. Barr confirmed he will step down effective February 28, 2025, creating a crucial opening in the bank's regulatory leadership. Meanwhile, the central bank is proceeding with plans to restructure its supervision and regulation division, aiming to cut Board-level staffing by roughly 30% while shifting focus toward significant risks rather than procedural details.

According to people familiar with internal discussions, the White House is actively considering candidates who align with its deregulatory agenda and preference for more accommodative monetary policy. Hassett's public positioning suggests he may be among those under consideration, though administration officials have not commented on specific candidates.

Efforts to reshape the Fed's leadership have already generated controversy, including attempts to remove sitting Governor Lisa Cook and ongoing criticism of Chair Jerome Powell's interest rate decisions. The political interventions have drawn warnings from international central bankers about the risks to Fed independence and global financial stability.

Market participants are closely monitoring the situation, with several analysts noting that significant leadership changes could affect the timing and pace of interest rate adjustments. "The composition of the Board matters tremendously for both monetary policy and regulatory approach," said one institutional investor who requested anonymity to discuss sensitive matters. "We're watching these developments closely."

The Fed is simultaneously finalizing changes to its supervisory rating framework for large bank holding companies and enhancing transparency in regulatory stress testing. These reforms, combined with the planned workforce reductions, represent the most significant overhaul of the central bank's oversight approach in years.

Hassett did not respond to multiple requests for comment about his specific interest in Fed positions. However, colleagues describe him as having maintained active interest in monetary policy since his White House tenure and regularly consulting with current Fed officials on economic matters.

Correction: An earlier version of this article misstated the percentage of workforce reduction in the Fed's supervision division. The planned reduction is approximately 30% at the Board level.