Trump tells Hassett he wants to keep him where he is; Warsh Fed Chair odds jump

President Donald Trump on Friday said he'd prefer to keep National Economic Council Director Hassett in his position as top economic advisor, a statement that could change the dynamic in the race to see who will replace Jerome Powell as Federal Reserve chair.

During an appearance in the White House, Trump said, “I see Kevin's in the audience, and I just want to thank you. You ⁠were fantastic on television today.”

I actually want to keep you where you are, if you want to know the truth, he added.

Hassett has been considered a leading contender to take the central bank reigns, competing closely with former Fed Governor Kevin Warsh.

Trump has been a fierce Fed critic and has indicated he will replace Powell when his term as chair ends in May. Hassett and Warsh are two of five finalists for the position, a group that also includes current Fed Governors Christopher Waller and Michelle Bowman.

Traders on Kalshi pushed Warsh well ahead of the person seen as his closest competitor, National Economic Council Director Kevin Hassett.

Trump has indicated he will name a Powell successor this month but hasn't provided a specific date. Powell's term as chair ends in May.

Turning to White House Chief of Staff Susie Wiles, Trump said, “We don't ‍want to him lose [Hassett], Susie, but we'll see how it all works out.”

After Trump spoke, traders on predictions market site Kalshi raised their bets to a 60% chance of Warsh getting the job, compared to just 16% for Hassett and 14% for Waller.

As recently as Wednesday, Warsh and Hassett were in a near dead heat.

Traders on Polymarket expressed a similar dynamic, with Warsh leading Hassett 60% to 15% and Waller at 13%. Traders are giving little odds to BlackRock fixed income chief Rick Rieder and Fed Governor Michelle Bowman, the other two candidates considered finalists.