Washington — Kevin Hassett, Director of the National Economic Council and a leading contender to become the next Federal Reserve chair, said Sunday that the Fed’s monetary policy must remain “fully independent” from political pressure — including from President Trump.
“We’ve seen what happens when leaders take control of central banks — it leads to inflation and misery for consumers,” Hassett told Face the Nation.
Trump revealed Friday that Hassett is one of three finalists to succeed current Fed Chair Jerome Powell, whose term expires in 2026. Powell has faced heavy pressure from Trump to slash interest rates, raising concerns about White House influence over the traditionally independent institution.
Hassett noted that both Democratic and Republican administrations have historically respected Fed independence but acknowledged disputes over the current central bank’s transparency. He also expressed support for Treasury Secretary Scott Bessent’s recent Wall Street Journal op-ed warning that “mission creep” threatens the Fed’s independence, though he stopped short of committing to specific reforms.
Other names on Trump’s shortlist include Fed Governor Christopher Waller and former Fed Governor Kevin Warsh.
The president’s recent attempts to oust Fed Governor Lisa Cook and nominate senior White House aides to board positions have intensified Wall Street concerns about political interference. Trump nominee Stephen Miran, who testified last week, admitted the president selected him for his policy views but promised he would act independently if confirmed.
Public opinion reflects deep divisions: a new CBS News poll shows 68% of Americans want the Fed to operate without White House influence, though 59% of Republicans believe the Fed should follow the president’s lead.
The debate comes as the U.S. economy shows signs of cooling. Employers added just 22,000 jobs in August, following another weak report in July. The Federal Reserve is scheduled to announce its next interest rate decision on September 17.
