Fed chair frontrunner says Trump won't have any influence on FOMC's decision-making
The Trump administration's policies have become the topic of a heated debate, with tariffs triggering a surge in prices. But one of the leading candidates for the position of the Federal Reserve chair said that the agency will remain independent if he gets the position. White House Economic Council Director Kevin Hassett told CBS in an interview that he will be happy to voice the president's opinions and suggestions to the Federal Open Market Committee, but it will be up to the members to take or reject them. Hassett stressed that the president's voice will have 'no weight' when it comes to the committee making decisions on interest rates.
Since taking office, Trump has repeatedly insisted that he needs to have some say in the monetary policy. "I made a lot of money. I was very successful. And I think I have a better instinct than, in many cases, people that would be on the Federal Reserve — or the chairman," the president said on Friday in a press conference. However, on CBS's Face the Nation, Hassett pointed out that despite Trump having "very strong and well-founded views," the Fed is an independent agency and the chairman is tasked with driving a consensus among other policymakers on the FOMC regarding the interest rates.
“But in the end, it’s a committee that votes. And I’d be happy to talk to the president every day until both of us are dead because it’s so much fun to talk, even if I were Fed chair of if I wasn’t Fed chair,” Hassett said. When asked if president Trump will have an equal weight as the voting members on the FOMC, Hassett said, “no, he would have no weight.” He further added, “His [Trump's] opinion matters if it’s good, if it’s based on data, and then if you go to the committee and you say, ‘well, the president made this argument, and that’s a really sound argument, I think. What do you think?’ If they reject it, then they’ll vote differently.”
Hassett has been a fierce defender of Trump's economic policies and supported his view on easing interest rates. Before sharing his views on the interview, President Trump on Friday told the Wall Street Journal that his current top contender for the role of Fed Chair was Kevin Warsh. This came as a surprise to many, as Hassett was considered to be the frontrunner for a long time. The publication reported that Warsh, a former Fed governor, pushed himself up the list following an interview with the president last week, where Trump pressed him on whether he could be trusted to cut back rates. “I think you have Kevin [Hassett] and Kevin [Warsh]. They’re both — I think the two Kevins are great," Trump added.
The President previously stated that he will nominate a Fed chair in early 2026, with the current chief, Jerome Powell, whose term is due to expire in May.
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