Kevin Hassett, a leading contender for President Donald Trump’s choice for Federal Reserve chair, said Trump’s voice would have no bearing on the central bank’s interest rate decisions under his presidency.
“[He] “He has very strong, well-informed views about what we should do,” Hassett, Trump’s top White House economic adviser, said Sunday on CBS’ Face the Nation.
“But in the end, the Fed’s job is to be independent and work with the group of people who are on the Board of Governors, the FOMC, to drive a group consensus on where interest rates should be,” he added.
Hassett’s comments follow Trump’s recent comment that he should have a say in the Fed’s rate decisions.
Hassett is largely seen as a moderate candidate who is likely to align with Trump’s demands for aggressive interest rate cuts to boost economic growth. His advocacy for looser monetary policy, including recent support for further cuts, positions him to tilt the Federal Reserve toward prioritizing economic expansion over controlling inflation.
Bitcoin bulls are hoping for Fed rate cuts to maintain an upward price trajectory in the coming months.
As of this writing, Hassett leads the Polymarket odds at 52% for Fed Chairman, beating former Fed Governor Kevin Warsh’s 40%. Warsh’s probability has risen sharply from 13% since Trump met with him last week. Powell’s term is scheduled to end. May 15.
