Kevin Hassett, one of the candidates to replace the current Federal Reserve chairman, played down concerns that President Donald Trump could undermine the central bank, insisting that Trump’s views carry “no weight” in the agency’s decisions.
A new Fed chair is expected to be announced in mid-January, and some are concerned that Trump is trying to expand his influence across the Fed by replacing the majority of FOMC leaders.
In an interview with CBS News’ Face the Nation on Sunday, Hassett emphasized that the Fed’s role is to maintain “independence” and give final say to the Federal Market Committee’s 12 boards.
“No, no, he won’t have any weight. Only his opinion matters whether it’s good or not and whether it’s based on data or not,” he said, adding:
“And if you go to a committee and say the president made this argument, and it’s a really sound argument, what do you think? If they reject it, they’re going to vote another way.”
Hassett talked about the Fed and Trump. sauce: Let’s face the nation
The race for chairman of the Federal Commission may be narrowed down to two Kevins
On Friday, President Trump suggested that the race to be the next Fed chairman is being led by two of the four finalists interviewed, former Fed director Kevin Warsh and Hassett.
In an interview with The Wall Street Journal on Friday, President Trump said Warsh was at the top of his list.
“Yes, I think so,” he said, adding, “I think there’s Kevin and Kevin. Both. I think both Kevins are great.”
Earlier this month, odds from prediction markets like Calci and Polymarket put Mr. Hassett at an 85% chance of becoming the next Fed chairman. However, that possibility has decreased significantly following President Trump’s recent comments.
As of this writing, Hassett still leads the Kalsi odds at 50%, with Warsh in second place at 39%.
Trump also said in the WSJ interview that the next Fed chair should seek advice on setting interest rates.
“Typically, that’s not done now. It used to be done routinely. It should be done,” he said.
Trump added: “I don’t think he should just do what we say. But certainly we do. I think it’s a sensible opinion and we should listen.”
Cryptocurrency market remains flat despite Fed interest rate cuts
The Fed cut interest rates by 25 basis points last Wednesday, bringing the target range to 3.5% to 3.75%. However, it was not a boon for the crypto market and prices remained flat.
Comments from current Fed Chairman Jerome Powell suggest the Fed remains cautious, although not hawkish.
“In the near term, the risks to inflation are tilted to the upside and the risks to employment are tilted to the downside, so it’s a difficult situation. There is no risk-free path for policy,” Powell said at Wednesday’s FOMC meeting.
Upon taking office as the next chairman, President Trump has expressed a desire for further interest rate cuts in 2026, which could spur bullish behavior in the cryptocurrency market.
“He thinks we need to lower interest rates,” Trump said of Warsh in an interview with the Journal.
“So do other people I’ve talked to,” he added.
