Fed Chairman Candidate Kevin Hassett: Mr. Trump will not influence interest rate decisions

Kevin Hassett, a leading candidate for the position of Chair of the U.S. Federal Reserve (Fed), affirms that the Fed will remain independent even if he is appointed. He stated that although President Trump has strong views on economic policy and is willing to listen, decisions on interest rates are still entirely made by the Federal Open Market Committee (FOMC) based on data and voting mechanisms.

Hassett explains that although he currently discusses monetary policy daily with President Trump in his role as Chair of the National Economic Council, these discussions do not carry official weight. The President’s perspectives are only brought up for discussion within the Fed if there is solid data and cannot override the votes of the members.

Regarding inflation, Hassett believes that price pressures are cooling down, thanks to falling gasoline, prescription drugs, and food prices, along with shrinking budget and trade deficits, rising incomes, and stable consumer spending.