(Bloomberg) -- White House National Economic Council Director Kevin Hassett touted a positive market response to indications that Donald Trump could pick the next Federal Reserve chair before the end of the year -- a job that the president's chief economic adviser is seen as likely to win.
Hassett, speaking on CBS' on Sunday, declined to address whether he considers himself the front-runner to replace Fed Chair Jerome Powell in response to Bloomberg News reporting last week that he is seen as the leading contender, though he called the report a "rumor."
However, he cited positive market reaction to the news that Trump is seen as close to naming his pick -- a subtle nod to concerns that investors will see him as too close to the president.
"We had a great Treasury auction, interest rates went down and I think that the American people could expect President Trump to pick somebody who's going to help them have cheaper car loans and easier access to mortgages at lower rate," Hassett said on CBS. "That's what we saw in the market response to the rumor about me."
Trump trusts Hassett and views him as aligned on the desire to push for more aggressive interest-rate cuts at the central bank, people familiar with the matter have said. His emphasis of the market reaction was a de-facto rebuttal to any fears that his nomination would be interpreted as an overt threat to the Fed independence.
Though Trump is known for last-minute changes, the prospect of Hassett being nominated for the position briefly pushed the 10-year Treasury yield below 4%.
Treasury Secretary Scott Bessent, who has overseen the selection process, said last week Trump could announce his nominee before the Dec. 25 Christmas holiday.
Trump's frustration with Powell has grown as the Fed slowly begins lowering rates again, and he has signaled he wants a chair who will more forcefully pursue cuts. Hassett says he'd accept the role if asked, though analysts warn he may struggle to unite the Fed's rate-setting committee and could be more vulnerable to Trump's pressure.
Alongside Hassett, other finalists include Fed governors Christopher Waller and Michelle Bowman, former Fed governor Kevin Warsh and BlackRock's Rick Rieder. Trump also regularly says he'd like Bessent as chair, a notion Bessent has repeatedly rejected.
Whoever Trump picks will require Senate confirmation as chair and likely to a 14-year Fed governor term that begins in February if the selection is an outsider. Powell's term as chair ends in May.