WASHINGTON, April 9 - White House economic adviser Kevin Hassett said on Thursday he expects Kevin Warsh to begin serving as Federal Reserve chair in May and indicated he did not anticipate Jerome Powell remaining on the central bank's board.
Speaking on Fox Business Network, Hassett said he was optimistic about the timeline for a confirmation process, telling the network: "I’m highly confident that that will happen." He added that he believed a confirmation hearing for Warsh was on track to begin next week.
Hassett also described Powell's stance on the transition, saying the current Fed chair had conveyed an intent to step down once a new leader is in place. "He’s really signaled that once there’s a confirmed head chair, that he’ll step aside, and that’s the appropriate thing for him to do," Hassett said on the "Mornings with Maria" program.
That characterization sits alongside public comments from Powell in March indicating a different timetable. Powell said then that he would not leave the Fed at least until a criminal investigation, led by U.S. Attorney Jeanine Pirro, is finished. He also said he had not yet made a decision about remaining in a governor’s seat on the Federal Reserve’s board, a term that extends through 2028.
Powell’s term as Fed chief is set to expire in May. Complicating the administration's effort to move quickly is a recent court ruling: a U.S. judge last week upheld a block on subpoenas that are part of the investigation into Powell. That decision is expected to prompt an appeal, a process that could further slow President Donald Trump’s effort to appoint what the article described as a more compliant central bank head.
The timeline described by Hassett envisions a confirmation process beginning imminently and a change in leadership in May, but the statements from Powell and the ongoing legal developments highlight outstanding uncertainties about how quickly a transition could occur and whether Powell might remain on the Fed’s board beyond the end of his term as chair.
Summary
Kevin Hassett said he is confident Kevin Warsh will take over as Federal Reserve chair in May and that Jerome Powell has signaled he will step aside once a successor is confirmed. Powell has said he will not leave until a criminal investigation led by U.S. Attorney Jeanine Pirro is concluded and has not decided whether he will stay on the Fed board until 2028. A recent judicial ruling upholding a block on subpoenas in that investigation could lead to an appeal and potentially delay the administration's plan to install a new Fed chief.
Key points
- Hassett expressed strong confidence Warsh will begin as Fed chair in May and that a confirmation hearing could start next week - impacts governance and leadership at the central bank.
- Powell has publicly stated he will not depart until the criminal investigation led by U.S. Attorney Jeanine Pirro is complete and has not decided about remaining as a governor through 2028 - legal and personnel uncertainty affecting the Fed board.
- A federal judge recently upheld a block on subpoenas in the probe into Powell, an outcome likely to be appealed and which could delay the president's plan to appoint a new, more compliant Fed chair - introducing further timeline risk.
Risks and uncertainties
- The status of the criminal investigation led by U.S. Attorney Jeanine Pirro and its unresolved subpoenas creates legal uncertainty that could delay leadership changes at the Fed - affecting financial markets and policy certainty.
- Powell’s stated intention to remain until the investigation concludes and his undecided position on staying as a governor through 2028 leave open the possibility he could remain on the Fed board, complicating the anticipated personnel transition - relevant to governance and monetary policy continuity.
- The potential appeal of the judge’s decision to uphold a block on subpoenas introduces timing risk for the administration’s effort to install a new chair, with possible knock-on effects for investor expectations and market reaction to Fed leadership changes.