Hassett: Trump’s rate views hold no weight at the U.S. Fed
Kevin Hassett, considered a leading candidate to succeed the current chair of the US Federal Reserve, said concerns that US President Donald Trump could influence the central bank are misplaced, asserting that the president’s views would carry “no weight” in policy decisions. An announcement on the next Fed chair is expected in mid-January.
Speaking on CBS News’ Face the Nation on Sunday, Hassett underscored the Fed’s independence and said rate decisions rest with the 12 voting members of the Federal Open Market Committee. “No, no, he would have no weight. It’s just his opinion matters if it’s good, you know, if it’s based on data,” he said, adding: “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.”
Fed chair selection narrows to ‘two Kevins’
On Friday, Trump indicated that two of four finalists — former Fed governor Kevin Warsh and Hassett — are leading the search. In an interview with The Wall Street Journal, Trump said Warsh was at the top of his list. “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.”
At the start of this month, prediction markets including Kalshi and Polymarket assigned Hassett an 85% probability of becoming the next Fed chair. Those odds have since fallen following Trump’s latest remarks. At the time of writing, Kalshi showed Hassett at 50% and Warsh at 39%.
During the WSJ interview, Trump also said the next Fed chair should seek his counsel on interest rate policy. “Typically, that’s not done anymore. It used to be done routinely. It should be done,” he 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,” Trump added.
Crypto markets steady after Fed rate cut
Last Wednesday, the Fed reduced its benchmark rate by 25 basis points to a target range of 3.5% to 3.75%. The move has not lifted cryptocurrency prices, which have remained largely unchanged.
Comments from current Fed chair Jerome Powell signaled a cautious stance. “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 at Wednesday’s FOMC meeting.
Looking ahead, Trump has indicated he favors additional interest rate cuts in 2026, a position he said Warsh supports. “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.
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