Kevin Hassett, a leading contender to become President Donald Trump’s next Federal Reserve chairman, drew a distinct line between political advice and monetary policy on Sunday, asserting that the President’s personal views on interest rates would carry “no weight” in the voting room unless they were backed by hard economic data.
Appearing on CBS News’ “Face the Nation,” Hassett navigated the delicate balance of courting the President’s nomination while defending the central bank’s traditional independence.
While he committed to maintaining an open line of communication with the White House, he clarified that the final say on interest rates belongs strictly to the Fed’s committee — not the Oval Office.
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When asked directly if Trump’s opinions would hold “equal weighting” with Fed officials, Hassett was blunt.
“No, he would have no weight,” Hassett said. “His opinion matters if it’s good, if it’s based on data.”
Hassett, who previously served as a top economic adviser to Trump, explained that he views the role as a conduit rather than a rubber stamp. He suggested he would dutifully present the President’s arguments to the committee for consideration.
“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 in a different way,” Hassett explained.
The comments come at a pivotal moment as the President conducts final interviews to replace current Chair Jerome Powell, whose term expires next May. The stakes are high: Trump has publicly demanded the central bank slash its key rate — currently sitting around 3.6% — to 1% or lower. It is a drastic reduction that virtually no mainstream economist supports, sparking fears on Wall Street that a Trump-appointed chair might sacrifice inflation control for short-term political wins.
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For decades prior to 2016, U.S. presidents generally avoided public commentary on Fed decisions to preserve the bank’s credibility in fighting inflation. Trump, however, has shattered those norms, arguing that his business background earns him a seat at the table.
“I’ve done great. I’ve made a lot of money, I’m very successful,” Trump said on Friday. “I think my voice should be heard.”
The race for the top banking job appears to be narrowing down to a “battle of the Kevins.” alongside Hassett, the Wall Street Journal reports that Kevin Warsh, a former Fed governor and fellow at the Hoover Institution, is a top favorite.
“I think the two Kevins are great,” Trump told the Journal.
Despite the President’s pressure campaign for lower rates, Hassett reiterated that the structure of the Federal Reserve is designed to resist one-man rule.
“In the end, the job of the Fed is to be independent,” Hassett said, adding a touch of personal affinity for his former boss. “I’d be happy to talk to the President every day until both of us are dead because it’s so much fun. [But] in the end, it’s a committee that votes.”
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