The White House's top economic advisor expressed strong confidence that Kevin Warsh will assume the role of Federal Reserve Chair starting in May, succeeding Jerome Powell.

Kevin Hassett made the remarks during an appearance on Fox Business Network's "Mornings with Maria." He stated he has "full confidence" in the timeline and anticipates Warsh's confirmation hearing to begin next week. According to Hassett, Powell has signaled he will step aside once a new chair is confirmed, calling it the appropriate course.

Powell contradicted this narrative in March. He indicated he would remain at the Fed until a criminal investigation led by U.S. Attorney Jeanine Pirro concludes. Powell has not decided whether to stay on as a governor, a position that extends to 2028. His current term as chair ends in May.

Reuters reports these developments amid ongoing legal challenges. A U.S. judge last week upheld a block on subpoenas issued in the probe against Powell. This sets the stage for a likely appeal, potentially delaying President Trump's efforts to install a leader more aligned with his views on monetary policy.

A leadership change at the Fed could influence interest rate decisions and broader economic policy. Warsh, a former Fed governor under both Bush and Obama administrations, has been floated as a candidate favoring tighter policy in certain scenarios. Markets will monitor confirmation progress closely, as delays could prolong uncertainty around the central bank's direction.

Hassett's comments underscore the administration's push for swift transition, though Powell's stance and judicial hurdles introduce complications. According to Reuters via IEX, the situation remains fluid pending further legal and Senate actions.