• Trump wants to keep Kevin Hassett in his current role at the White House.
• This move complicates the ongoing search for the next Federal Reserve chair.
• Kevin Warsh gains momentum as a potential nominee amid Hassett's uncertainty.

President Trump announced his preference to retain his top economic adviser, Kevin Hassett, in his current role rather than appointing him to replace Jerome Powell as chair of the Federal Reserve. “I actually want to keep you where you are, if you want to know the truth,” he stated at a White House event, highlighting Hassett's contributions and performance on television. Trump's statements have raised questions regarding an active search for Powell's successor, which now seems less certain, according to Reuters and Los Angeles Times.

While Hassett has been recognized as a leading candidate to take over the Fed chair position, Trump’s remarks may inadvertently bolster the candidacy of Kevin Warsh, a former Fed governor. The president's favorable comments towards Hassett impacted the expectations surrounding the nomination process, shifting the focus back to Warsh, who is viewed as a strong contender and already trusted by Republican senators, according to India Times and Los Angeles Times.

The Federal Reserve's situation is further complicated by recent legal issues, including subpoenas relating to Powell, which are seen as attempts to challenge the Fed's independence. This climate may hinder Hassett’s potential confirmation, as noted by Krishna Guha, an analyst at Evercore ISI, who remarked that the inquiries could “make it harder to confirm Hassett.” The intensified scrutiny surrounding Powell’s role amid allegations of misconduct adds pressure to the ongoing decision-making process for the White House, according to Reuters, India Times, and Los Angeles Times.