Kevin Hassett, widely seen as a leading contender to replace the current chair of the US Federal Reserve, sought to ease concerns that President Donald Trump could exert influence over the central bank, saying Trump’s views would carry “no weight” in its decision-making.
With an announcement on the next Fed chair expected in mid-January, some critics have raised fears that Trump may try to expand his influence over the institution by reshaping leadership at the Federal Open Market Committee (FOMC).
Speaking to CBS News’ Face the Nation on Sunday, Hassett stressed that the Federal Reserve must remain “independent,” with its 12-member policy committee retaining ultimate authority.
“No, no, he would have no weight,” Hassett said. “It’s just his opinion matters if it’s good — if it’s based on data,” he added.
“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 in a different way.”
Race for Fed chair may come down to ‘two Kevins’
On Friday, President Donald Trump said the race to become the next chair of the US Federal Reserve has narrowed to two leading contenders out of four finalists — former Fed governor Kevin Warsh and Kevin Hassett.
In an interview with The Wall Street Journal, Trump indicated that Warsh is currently his top choice.
“Yes, I think he is,” Trump said, adding, “I think you have Kevin and Kevin. They’re both — I think the two Kevins are great.”
Earlier this month, prediction markets such as Kalshi and Polymarket gave Hassett an 85% chance of securing the role. Those odds have since fallen sharply following Trump’s comments. At the time of writing, Hassett still leads on Kalshi with a 50% probability, while Warsh trails closely at 39%.
During the WSJ interview, Trump also said the next Fed chair should consult with him on interest rate decisions.
“Typically, that’s not done anymore. It used to be done routinely. It should be done,” Trump said.
“I don’t think he should do exactly what we say. But certainly we’re — I’m a smart voice and should be listened to,” he added.
Crypto markets flat despite rate cut
Last Wednesday, the Fed cut interest rates by 25 basis points, bringing the target range to 3.5%–3.75%. However, the move failed to lift crypto markets, with prices largely unchanged.
Remarks from current Fed Chair Jerome Powell suggest the central bank remains cautious rather than overtly hawkish.
“In the near term, risks to inflation are tilted to the upside and risks to employment to the downside — a challenging situation. There is no risk-free path for policy,” Powell said during the FOMC meeting.
Looking ahead, Trump has signaled he wants deeper rate cuts in 2026, a move that could fuel bullish momentum in crypto markets.
“He thinks you have to lower interest rates,” Trump said of Warsh in the WSJ interview. “And so does everybody else that I’ve talked to,” he added.
