Next Fed chair: Kevin Hassett is among the frontrunners

Kevin Hassett, a long-time Trump economic adviser who now leads the National Economic Council, is seen as a top contender to replace Jerome Powell; his ties to the president have prompted questions about whether he would act independently at the Federal Reserve.

The next chair of the US Federal Reserve would be the president's nominee and then face Senate confirmation. Kevin Hassett, a conservative economist and former chair of the White House Council of Economic Advisers, is viewed as a leading contender. He currently leads the National Economic Council and has been a consistent defender of the administration's economic positions. Observers have noted both market moves and commentary that reflect debate over his potential role at the Fed. Key points: - Kevin Hassett, 63, served as chair of the White House Council of Economic Advisers and now heads the National Economic Council. - He is seen as a top contender to succeed Jerome Powell and has publicly defended Trump administration economic policies. - Hassett's close ties to the president have raised questions among analysts and some officials about whether he would act independently at the Federal Reserve. - Betting-market odds for Hassett reportedly fell after the president said in public remarks that he would prefer to keep Hassett in his current role. - Deutsche Bank economists wrote that Hassett might initially struggle to persuade other policymakers to lower interest rates, citing scepticism about forward-looking arguments tied to administration policies. - Hassett told CNBC that the Fed's independence was "really, really important" and said there was still room for interest rates to fall. Summary: If the president selects a nominee, that person would go to the Senate for confirmation. Analysts and some officials have expressed differing views about how a Hassett nomination would affect internal Fed debates on inflation and interest-rate policy. A formal nomination has not been announced at this time.