White House economic advisor Kevin Hassett says Fed needs full independence from Trump

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President Trump’s potential nominee for the next Federal Reserve chair, Kevin Hassett, emphasized the importance of the central bank’s independence from political influence, including from Trump himself.

Hassett stated on CBS News’ “Face the Nation” show that “monetary policy needs to be fully independent to avoid inflation and consumer misery.”

White House National Economic Council Director Kevin Hassett is on President Trump’s short list to be the Fed’s next chair, Face the Nation

Trump’s public demands for immediate rate cuts and criticism of Fed Chair Jerome Powell have raised concerns about the central bank’s ability to make independent decisions.

There is also controversy surrounding Trump’s attempt to remove Federal Reserve Governor Lisa Cook, leading to a legal battle over the Fed’s autonomy.

Powell’s term as Fed chair is set to end in May, with potential successors like Hassett, Kevin Warsh, and Christopher Waller being considered.

Hassett stated, “I don’t have plans to overhaul the Fed right now. I’m focused on my current responsibilities.”

Jerome Powell at a press conference. — Federal Chair Jerome Powell’s term ends in May. REUTERS

Hassett supported Treasury Secretary Scott Bessent’s recent call for a review of the Federal Reserve’s powers, signaling a potential shift in policy direction.

Trump’s attempts to remove Governor Lisa Cook over mortgage-related issues have raised concerns about the Fed’s independence and led to a legal battle.