Kevin Hassett defends the independence of Federal Reserve amid Trump’s influence
TL/DR –
Director of the National Economic Council Kevin Hassett, considered a candidate for the Federal Reserve chair, has stressed the need for the Federal Reserve’s monetary policy to remain independent of political influence. This follows pressure from President Trump on current Federal Reserve Chair Jerome Powell to cut interest rates. However, recent polling from CBS News reveals a split, with 68% of Americans wanting the Federal Reserve to make independent decisions, while 59% of Republicans believe it should be guided by the president’s desires.
Washington — Director of the National Economic Council Kevin Hassett, a potential next chair of the Federal Reserve according to President Trump, emphasized the importance of an independent Federal Reserve Sunday, free from political influence, including that of the president.
Noting the potential for inflation and consumer hardship, Hassett used examples of nations where leaders have taken control of central banks, during his appearance on \”Face the Nation with Margaret Brennan\”.
His comments follow Mr. Trump’s statement Friday that Hassett is among three potential replacements for Federal Reserve Chair Jerome Powell, whose term concludes in 2026. Powell has faced significant pressure to lower interest rates, raising concerns about political influence over the central bank.
Hassett expressed that both Democrats and Republicans in the White House agree on central bank independence, although questioned whether the current central bank has demonstrated sufficient independence and transparency.
Following on from a Wall Street Journal op-ed from Treasury Secretary Scott Bessent, which called for Federal Reserve reform, Hassett agreed with Bessent’s critique, but declined to commit to implementing his ideas as potential Fed chair.
Other potential nominees include Federal Reserve Governor Christopher Waller and former Governor Kevin Warsh. This comes as Mr. Trump’s attempt to dismiss Federal Reserve Governor Lisa Cook sparked concerns among Wall Street analysts about independence at the Federal Reserve.
Stephen Miran, Mr. Trump’s nominee for a Federal Reserve Board seat, faced backlash from Democrats for suggesting he wouldn’t immediately resign from his White House role if confirmed. Despite having been selected due to agreement with Mr. Trump’s policy views, Miran commited to acting independently if confirmed.
A CBS News poll released Sunday revealed 68% of Americans want the Federal Reserve to make independent decisions, but 59% of Republicans believe the Fed should be guided by the president.
This comes as the August jobs report shows U.S. employers added only 22,000 jobs, falling short of predictions. This follows lower than expected hiring in July, adding complexity to the Federal Reserve’s upcoming rate cut decision scheduled for Sept. 17.
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Author: Kaia Hubbard
Kaia Hubbard is a political reporter for CBS News Digital, based in Washington, D.C.
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