Economists Favor Waller, But Hassett Seen as Likely Fed Pick

* Economists favor Fed Governor Chris Waller for his independent stance * Political pressures suggest National Economic Council Director Kevin Hassett is the frontrunner According to a September 28, 2025, report from the Financial Times, economists strongly favor Federal Reserve Governor Chris Waller as the next Fed chair. However, political maneuvering in President Donald Trump's second term suggests that National Economic Council Director Kevin Hassett is the frontrunner. Economists prefer Waller for his perceived independence and cautious approach to monetary policy, which contrasts sharply with Hassett’s alignment with Trump’s push for aggressive interest rate cuts to stimulate economic growth. The survey, conducted by the Financial Times and the Clark Center for Global Markets at the University of Chicago’s Booth School of Business, highlights the ongoing tension between monetary policy independence and political influence. These dynamics reflect the broader challenges the Federal Reserve faces as it navigates escalating debates over interest rates and economic strategy. Pressure for rate cuts has intensified under President Trump's administration, and earlier this month, the Federal Reserve enacted its first interest rate cut of 2025, lowering the benchmark federal funds rate to a range of 4-4.25%. However, the move did not satisfy everyone, as Trump nominee Stephen Miran dissented, arguing for a larger cut. Miran also proposed several additional reductions before the end of the year. The debate over the Fed chair comes during a period of mounting economic uncertainty, including a weakening labor market and growing concerns about stagflation. President Trump has publicly named three potential candidates—Waller, Hassett, and former Federal Reserve Governor Kevin Warsh—while emphasizing that loyalty and rate-cutting policies are key criteria for his appointments. As Treasury Secretary Scott Bessent begins conducting interviews for the position, the final decision will have significant implications for the Federal Reserve’s independence and its future monetary policy.