• Kevin Hassett will remain as Director of the National Economic Council, effectively removing him from consideration for Federal Reserve Chair.
  • Prediction markets shifted sharply, with Hassett's odds for Fed Chair falling to 16% and Kevin Wash rising to 54%.
  • Traders responded quickly to the news, impacting currencies, gold, and equities in real-time.

President Trump said Friday he prefers keeping Kevin Hassett as National Economic Council Director rather than moving him to the Federal Reserve. Trump praised Hassett's communication skills, noting Fed officials "don't talk much," and said, "I would lose you. It's a serious concern." The remarks, made during an impromptu briefing, caught many by surprise, given that Hassett had been on a short list of five candidates to replace Fed Chair Jerome Powell when his term ends in May 2026, according to Treasury Secretary Scott Bessent in October 2025.

Following the announcement, prediction markets reacted swiftly, with Hassett's odds for becoming Fed Chair plummeting to 16%, while another candidate, Kevin Wash, saw his odds surge to 54%, according to data from market analysts. Traders responded quickly, with initial movements in currencies, gold, and equities observed in the hours after the statement. One trader, speaking on condition of anonymity, noted, "The market is pricing in a higher likelihood of continuity at the Fed, but there's still uncertainty around who will ultimately get the nod."

Hassett, who has been serving as Director of the National Economic Council since January 2025 at the start of Trump's second administration, holds a PhD in economics from the University of Pennsylvania and previously worked as a research economist with the U.S. Federal Reserve Board of Governors for nearly a decade. His retention underscores Trump's confidence in his current economic team, with Hassett playing a key role in coordinating policies across the government, including tariff strategies and economic growth initiatives. Efforts to reach Hassett for comment were unsuccessful, but sources close to the administration say he remains focused on his advisory duties.

Without a move to the Fed, Hassett will continue to shape domestic economic policy from the White House, a role that has grown in importance amid ongoing trade negotiations and fiscal debates. The shift in prediction markets suggests traders are now looking elsewhere for Fed leadership clues, with Kevin Wash emerging as a frontrunner. As one analyst put it, "This isn't just about personalities—it signals potential shifts in monetary policy direction that could ripple through markets in the coming months." Updates on market reactions will follow as more data becomes available.