Kevin Hassett — the White House National Economic Council director and leading candidate to succeed Jerome Powell as chair of the Federal Reserve — said Sunday that President Donald Trump’s views on interest-rate policy would have “no weight” in monetary policy decisions if Hassett is appointed to lead the central bank. Hassett’s comments were made during an interview on CBS’s Face the Nation and underscore his effort to reassure markets and lawmakers about the Fed’s independence amid political pressure over interest rates.
Hassett, seen as President Trump’s preferred choice due to his role as a top economic adviser, stressed that decisions on interest rates are ultimately made by the Federal Open Market Committee (FOMC) — a panel of Fed officials — rather than by presidential influence. “His opinion matters if it’s good, if it’s based on data,” Hassett said, adding that committee members would be free to reject even strong arguments if they disagreed.
Reaffirming Central Bank Independence
Hassett’s remarks come amid concerns about political influence on monetary policy, particularly after President Trump has repeatedly criticized the current chair Jerome Powell and urged aggressive rate cuts. Trump has said in recent weeks that he wants rates much lower than what most economists support, fueling debate about the Fed’s independence.
Despite his close relationship with Trump, Hassett has repeatedly emphasized that a Fed chair must uphold the central bank’s autonomy and make decisions grounded in economic data and consensus among policymakers. In comments to Face the Nation and other outlets, he reiterated this stance while acknowledging that he would still consult regularly with the president if confirmed.
Market and Political Reactions
Hassett’s potential appointment has already drawn heavy market attention. Bond markets have moved in recent weeks as investors weigh the possibility that a chair influenced by Trump’s desire for rate cuts could reshape monetary policy. Analysts note that while the Fed chair sets the tone, monetary policy outcomes rest on committee deliberations, which helps insulate the central bank from unilateral influence.
At the same time, some lawmakers and economists have voiced concern about politicization of the Federal Reserve and its role in managing inflation and employment. They point to historical precedent that maintaining the Fed’s independence has been crucial for economic stability.
Next Steps in the Selection Process
President Trump is conducting final interviews this week with leading Fed chair candidates, with financial markets closely watching each development for clues about future policy direction. Hassett remains widely viewed as a frontrunner, though other contenders — including former Fed governor Kevin Warsh and current governors — are also under consideration.
A formal nomination is expected in the coming weeks, followed by Senate confirmation hearings early next year.
Reporting note: This article is based on verified sources including news wires, television interviews, and official statements. Coverage reflects ongoing developments in the Fed chair selection and debates over monetary policy independence.
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