BY MIRABEL ODETA
House adviser Kevin Hassett, one of the leading contenders to replace Federal Reserve Chair Jerome Powell, said the next head of the U.S. central bank should be an independent figure who fully respects the Fed’s dual mandate of promoting stable prices and maximum employment.
Speaking in an interview with CNBC on Thursday, Hassett said the Federal Reserve needs a leader similar to former Chair Alan Greenspan, who oversaw long periods of economic expansion in the 1990s. Hassett argued that Greenspan understood when strong growth was being driven by structural improvements rather than overheating, allowing the economy to expand without triggering runaway inflation.
Hassett echoed recent comments by U.S. President Donald Trump, saying the current economic environment shares important similarities with that era. He suggested the United States could experience growth exceeding 5% for two consecutive quarters, a pace rarely seen in recent decades.
Despite that strong outlook, Hassett emphasized that inflation pressures remain contained. He attributed this to rapid gains in productivity, driven largely by advances in artificial intelligence and heavy investment in data centers. According to Hassett, these forces are helping the economy grow faster without pushing prices sharply higher, reinforcing his view that the present moment resembles the productivity-driven expansion of the 1990s.
“It looks very, very much like the 90s to me right now,” Hassett said, adding that the type of judgment Greenspan applied during that period would be well suited to today’s conditions.
Trump on Wednesday signaled that a decision on the next Federal Reserve chair could be approaching. While he indicated he liked the idea of keeping Hassett in his current White House role, the president also praised BlackRock’s chief bond investment manager, Rick Rieder, describing him as “very impressive” following an interview.
Hassett also spoke highly of Rieder during his CNBC appearance, noting their long-standing relationship and calling him the best bond investor he knows. His comments underscored the growing speculation around who might ultimately be chosen to lead the central bank at a time when the U.S. economy is showing signs of strong growth alongside easing inflation concerns.