Mirror Review
December 04, 2025
Kevin Hassett, director of the National Economic Council, has quickly become the frontrunner for the next Federal Reserve Chair as President Donald Trump signals he has made his decision.
His rise puts him at the center of a growing controversy: Trump strongly favors him, yet many economists worry that Hassett’s close White House ties could test the Fed’s independence at a time when interest-rate strategy is already under intense scrutiny.
With markets expecting a shift toward faster rate cuts, Hassett’s potential appointment is shaping up to be one of the most consequential economic decisions of the year.
To see what shaped his economic views and public reputation, here are 10 Kevin Hassett facts you may not know.
10 Surprising Facts About American Economist Kevin Hassett
- Kevin Hassett once helped run parts of the Fed as a researcher
Before becoming a public-facing economist, Hassett spent time working in the “Division of Research and Statistics” at the Federal Reserve Board of Governors during the early 1990s.
That gives him a grounding in how the institution works, not just as a critic or external adviser, but from inside.
- He once co-wrote a wildly optimistic stock-market book
In 1999, Kevin Hassett co-authored Dow 36,000, which predicted that the Dow Jones Industrial Average could nearly quadruple.
After the dot-com bust, the book became controversial, and many called it overly naive.
- He’s long written on tax, fiscal policy, and energy economics
Beyond monetary policy, Hassett spent years at the conservative American Enterprise Institute (AEI), writing about corporate tax policy, energy, inequality, and more.
That background signals that, in theory, he brings a broader economic lens to the central-bank role and not just rate-setting.
- He believes corporate taxes ultimately hit workers, not shareholders
In his earlier writings, Hassett argued that corporate taxes are borne by workers through lower wages. This is a classic supply-side economic view.
That belief shaped his support for past tax-cut policies and may influence his view on fiscal-monetary interaction.
- Kevin Hassett has experience in crisis times, though with questionable forecasting
During the COVID-19 pandemic, Hassett returned to the White House to advise on economic strategy, building a model that predicted much lower virus-related deaths and an early economic rebound.
Many public-health experts criticized the model as overly optimistic, calling it unrealistic given the data.
- He once controversially labelled a country “a tax haven.”
While promoting U.S. tax reforms (the Tax Cuts and Jobs Act of 2017), Hassett called the Republic of Ireland “a tax haven.”
He later defended aggressive corporate tax cuts as part of a broader economic strategy.
- He has written regularly for mainstream and conservative media
Hassett has authored columns in major outlets such as The New York Times, The Wall Street Journal, and Bloomberg.
That gives him a public influence beyond government roles, shaping how many Americans view taxes, regulation, and markets.
- He is intellectually controversial — respected by some, dismissed by others
Critics have called some of his economic analyses flawed. For example, his early book predictions and tax-policy advocacy have been challenged by prominent economists.
This mix of respect and skepticism marks him as a risk-taking thinker.
- Kevin Hassett has a PhD in economics and years of teaching
Hassett earned a PhD in economics from the University of Pennsylvania and earlier taught at the Columbia Business School.
That gives him a solid theoretical foundation, not just a political one.
- His private investments include exposure to digital assets
Among his personal financial ties, it’s been reported that Hassett has owned stock in digital-asset firms.
This fact raises eyebrows if he becomes the Fed chair, given central bank oversight and regulators’ scrutiny.
What Kevin Hassett’s Possible Appointment Means Now
- Many believe that if Hassett becomes Fed chair, the bank will lean toward lowering interest rates. He has publicly criticized the current central bank for being “too slow” to cut rates and has called for more aggressive loosening.
- Markets seem to expect this shift since bond yields have dropped, and investors are pricing in an accommodative money policy under his potential leadership.
- His long experience shaping tax and regulatory policies could influence how he interprets economic risks, from inflation pressures to investment trends, inside the Fed.
Controversy, Criticism, and Risks Around Kevin Hassett’s Nomination
Critics raise several concerns around Kevin Hassett’s potential nomination:
- Hassett’s past, especially the wildly optimistic forecasts (like in “Dow 36,000”), leads many to question his realism about risk and bubbles.
- During the pandemic, his economic-first modeling downplayed public-health risks. Many experts called those projections “head-scratching,” undermining confidence in his data judgment.
- There are worries about politicization: as a close ally of the sitting President, some fear he might steer the Fed in line with political goals rather than strictly economic ones.
- Given that investors are pricing in rate cuts, if inflation remains persistently above target, aggressive easing could destabilize long-term yields or fuel economic overheating.
Conclusion
Kevin Hassett enters this moment with an unusual blend of strengths and liabilities.
He has worked inside the Fed, shaped White House economic strategy, led academic research, advised multiple presidential campaigns, and maintained a strong public voice through media and think-tank work. Few economists bring such a broad mix of political and institutional experience.
Supporters argue he would bring fresh urgency and clearer communication to the Fed. Critics counter that another leading candidate, like Christopher Waller, offers a more technocratic and less political approach.
If appointed, Hassett would succeed Jerome Powell when Powell’s term ends in May 2026, marking one of the most consequential leadership transitions at the central bank in years.
As the White House prepares to make its choice, markets and policymakers are left with the same dilemma: Is Kevin Hassett the steady, independent leader the Federal Reserve needs now, or would another candidate be better positioned to guide monetary policy through the next cycle?
Maria Isabel Rodrigues
