Trump's Federal Reserve Leadership Decision: Hassett as Next Fed Chair

The **National Economic Council (NEC)** is a key U.S. government agency established in 1993 by President Bill Clinton to coordinate economic policy-making and advise the President on both domestic and international economic issues[2][5][6]. Modeled after the National Security Council, the NEC's main mission is to ensure that economic policies across government departments are cohesive, aligned with the President’s agenda, and effectively implemented[5][6]. The NEC operates within the Executive Office of the President and is led by the Director of the National Economic Council, who serves as the President’s chief economic advisor[6]. The council includes senior officials from departments like Treasury, Commerce, and Labor, facilitating interagency collaboration to create strategic economic initiatives that promote sustainable growth, job creation, and financial stability[3][6]. Its staff size is around 30-35 full-time members as of late 2024, with resources allocated centrally through the White House[3]. Historically, the NEC was created to resolve coordination challenges in economic policymaking that existed under the older White House Office of Policy Development. It was designed to be powerful enough to enforce policy coordination without encroaching on cabinet officials’ domains[5]. Over time, the NEC has played a vital role in shaping major economic policies and responding to issues like infrastructure, manufacturing, labor markets, and financial regulation[4][6]. A notable aspect of the NEC is its distinction from the Council of Economic Advisors (CEA): while the CEA provides economic analysis and research, the NEC leads policy development and decision-making processes, managing how economic information is presented to the President and ensuring timely, balanced advice[7]. Current leadership includes Lael Brainard, under whose direction the NEC continues to influence economic strategies pertinent to business and technology sectors[4]. In summary, the NEC serves as the President’s central hub for economic policy coordination, advising, and implementation monitoring, making it a critical institution for shaping the U.S. economic landscape in

The **Council of Economic Advisers (CEA)** is a key agency within the U.S. Executive Office of the President, established in 1946 by the Employment Act to provide the President with objective economic analysis and advice on both domestic and international economic policy[1][2][6]. Its core mission is to promote *maximum employment, production, and purchasing power* by offering data-driven insights that inform policy decisions[1][6]. The CEA is composed of a Chair and typically two to three additional economists, all appointed by the President, with the Chair requiring Senate confirmation[2]. Supported by a team of professional economists and staff, the Council analyzes complex economic indicators such as GDP, inflation, and unemployment to forecast economic trends and assess the impacts of proposed legislation or executive actions[1][4]. A fundamental output of the CEA is the **annual Economic Report of the President**, a comprehensive publication reviewing the previous year’s economic performance and outlining policy goals aligned with the administration’s agenda[2][3]. This report relies on authoritative data from sources like the Bureau of Economic Analysis and Bureau of Labor Statistics, making it a vital resource for policymakers, economists, and the public[2]. Historically, the CEA’s formation was rooted in post-World War II concerns about returning to economic depression, aiming to institutionalize Keynesian fiscal policy principles to maintain economic stability and growth[6]. Early internal disagreements about the Council’s role reflected differing views on whether it should be strictly impartial or politically engaged, but over time it has become an indispensable part of the policy process. The CEA not only advises the President directly but also participates in inter-agency deliberations, shaping economic policy proposals and public understanding through briefings, memos, and media engagement[4][5]. It often acts as a safeguard against poorly conceived policies by evaluating potential unintended consequences[8]. Notably, the CEA has been a training ground for prominent economists, including Nobel laureates like Paul Kru

## Overview and Mission The Federal Reserve, often called the "Fed," is the central bank of the United States, established by Congress in 1913 to provide the nation with a safer, more flexible, and stable monetary and financial system[1]. Its mission centers on a dual mandate from Congress: to promote maximum employment and maintain price stability, ensuring the dollar retains its value over time[1]. The Fed operates through a unique hybrid structure, combining a national Board of Governors in Washington, D.C., with 12 independent regional Reserve Banks, including institutions like the Cleveland Fed[1]. This decentralized setup allows the Fed to closely monitor economic conditions across diverse regions, industries, and communities, while maintaining independence from short-term political influences[1]. ## Key Functions The Fed’s responsibilities are broad and vital to the U.S. economy. It conducts monetary policy—primarily by influencing interest rates—to achieve its employment and inflation goals[2]. The Fed also supervises and regulates banks to ensure the safety and soundness of the financial system, works to minimize systemic risks, and fosters efficient payment and settlement systems[2]. Additionally, it promotes consumer protection and community development, addressing emerging issues through research, supervision, and enforcement of consumer laws[2]. ## History and Evolution The Federal Reserve is the third central bank in U.S. history, following two failed attempts in the 19th century[1]. Its creation was a response to the financial turbulence of the early 20th century, aiming to prevent crises and stabilize the economy. Over time, the Fed has evolved, adopting more transparent and inclusive policymaking processes. For example, it now conducts regular reviews of its monetary policy framework, engaging with academics, businesses, and the public to refine its strategies and communications[3][5]. ## Recent Developments and Achievements In 2025, the Fed completed its second major review of its monetary policy strategy, tools, and communications, reaffirming its commitment to transparenc