Kevin Hassett, a leading candidate for President Donald Trump’s choice for Fed chair, asserted that Trump’s influence would not impact the central bank’s interest rate decisions if he becomes chairman.
“[He] has very strong and well-founded views about what we ought to do,” Hassett, who served as Trump’s chief economic adviser at the White House, stated on Sunday during CBS’ Face the Nation.
“However, the Fed’s role is to remain independent and collaborate with the Board of Governors and the FOMC to reach a consensus on interest rates,” he continued.
Hassett’s comments come after Trump recently suggested that he should be able to influence Fed rate decisions.
Hassett is viewed as a dovish candidate, likely to support Trump’s requests for substantial interest rate cuts aimed at stimulating economic growth. His push for a more lenient monetary policy, including backing larger cuts, positions him to steer the Fed toward focusing on economic growth rather than inflation control.
Bitcoin advocates are hopeful that Fed rate cuts will help maintain a positive price trend in the upcoming months.
As of now, Hassett is leading in Polymarket odds at 52% for the position of Fed chair, surpassing former Fed Governor Kevin Warsh’s 40%. Warsh’s chances have sharply increased from 13% since his meeting with Trump last week. Powell’s term is set to conclude on May 15.
