Kevin Hassett, a top contender for President Donald Trump’s pick for Federal Reserve chair, said Sunday that while he would share the president’s views with Fed officials, the central bank could reject them when setting interest rates.
In an interview on CBS News’ “Face the Nation,” Hassett said he would continue consulting with Trump if appointed, but when asked whether the president’s opinions would carry “equal weighting” with the Fed’s interest-rate committee, he replied, “No, he would have no weight.”
“His opinion matters if it’s good, if it’s based on data,” Hassett said. “If you go to the committee and say, ‘the president made this argument and it’s sound,’ but they reject it, then they’ll vote differently.”
Trump is reportedly finalizing interviews with candidates to replace current Fed Chair Jerome Powell, whose term ends next May. The president has emphasized that he wants a nominee who will sharply reduce the Fed’s key rate from around 3.6% to 1% or lower, a position few economists share. Trump’s public commentary has renewed concerns about the Fed’s political independence, traditionally respected by presidents of both parties.
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Hassett stressed that the Fed’s independence would remain intact under his leadership. “In the end, it’s a committee that votes,” he said. “I’d be happy to talk to the president every day until both of us are dead because it’s so much fun.”
Trump has also expressed interest in Kevin Warsh, former Fed governor, as a potential replacement for Powell, calling both Warsh and Hassett “great.”
Source: AP