On Friday, January 16, 2026, President Donald Trump publicly stated his preference to keep Kevin Hassett, his top economic advisor, in his current role as Director of the National Economic Council, rather than nominating him to be the next Federal Reserve Chair. This declaration, made during a White House event, significantly altered the landscape of the highly anticipated Fed leadership selection. Hassett, who previously served as Chairman of the Council of Economic Advisers in Trump's first administration and was recently announced as the National Economic Council Director for the upcoming second administration, had been considered a leading contender to succeed current Fed Chair Jerome Powell, whose term concludes in May 2026. Trump reportedly praised Hassett's communication skills and expressed concern that moving him to the less public-facing Fed Chair role would diminish his administration's messaging on economic policy. The President's remarks have reportedly "upended expectations" within political and financial circles, leading to a surge in the perceived prospects of other candidates, notably former Fed Governor Kevin Warsh. Betting markets quickly reflected this shift, showing a significant drop in Hassett's chances for the top central banking position. The news also triggered immediate reactions in financial markets, with the dollar experiencing a rise and stock markets recording a dip. Adding to the complexities, Hassett recently faced criticism for defending a Justice Department criminal investigation into sitting Fed Chair Jerome Powell, comparing it to routine government oversight. Critics argued these comments were inappropriate for a potential Fed Chair and raised concerns about the independence of the central bank. This episode further complicated Hassett's path to the Fed, making Trump's latest statement a pivotal moment in the ongoing selection process for one of the world's most influential financial positions.