Kevin Hassett, the head of the National Economic Council, indicated that while he would take President Donald Trump’s perspectives into account if appointed to lead the Federal Reserve, the central bank’s interest rate decisions would continue to be determined independently.
Speaking on a Sunday broadcast, Hassett, who serves as Trump’s chief economic adviser, emphasized that the president holds firm and well-reasoned views regarding monetary policy. However, the Federal Reserve’s primary function is to operate autonomously, with its Board of Governors and the Federal Open Market Committee developing a group consensus on the direction of interest rates.
Hassett’s comments came in response to discussions about Trump’s recent statement suggesting he should have input on the Fed’s rate-setting process. The president, along with senior officials, has repeatedly urged Fed Chair Jerome Powell to reduce rates over the past several months, while also considering candidates to replace the central bank’s chief as his term concludes in May.
Hassett is reportedly considered the leading contender for the position, though Trump recently also met with former Federal Reserve Governor Kevin Warsh. In a recent interview, Trump identified both Hassett and Warsh as his principal choices.
Trump remarked that an incoming Fed chair would be inclined to support rate cuts, adding that the administration continues to contend with elevated borrowing costs.
Hassett clarified that, as Fed chair, he would value ongoing discussions with the president but stressed that the ultimate decision on rates resides with the Federal Open Market Committee, whose members are free to disagree with external opinions, including those from the White House.
He noted that the president’s recommendations would be considered only insofar as they are grounded in sound data, reiterating that voting members maintain sole authority over Fed policy decisions.
