Kevin Hassett, Trump’s pick for Fed chair, pledges central bank independence but acknowledges the president’s “well-founded” views on monetary policy
NEW YORK: Kevin Hassett, the front-runner to lead the US Federal Reserve, has pledged to maintain the central bank’s independence if appointed.
President Donald Trump’s economic adviser made the comments during an appearance on CBS’s “Face the Nation” on Sunday.
Hassett stated that the Fed’s core mission is to demonstrate independence from political influence.
“I think he (Trump) has very strong and well-founded views about what we ought to do. But in the end, the job of the Fed is to be independent,” Hassett said.
When asked if the president’s voice would carry equal weight with Fed governors, Hassett replied, “No, no… he would have no weight.”
He clarified that the president’s opinion “matters if it’s good, you know, if it’s based on data.”
Trump publicly named Hassett as his favourite to replace outgoing Chair Jerome Powell on December 2.
Hassett currently chairs the White House’s National Economic Council and served as chair of the Council of Economic Advisers during Trump’s first term.
The comments follow a recent Fed decision to cut interest rates for a third consecutive time this year.
The quarter-point cut lowered rates to a range between 3.50% and 3.75%, their lowest level in around three years.
Trump criticised the move, stating the Fed could have “at least doubled” the size of the rate cut.
On Sunday, the president again attacked Powell, calling him “incompetent” and suffering from “Trump derangement syndrome.”
“We’ll soon have a good head of the Fed who’s going to want to see interest rates go down,” Trump said at the White House.
Hassett’s nomination would require approval from the Republican-controlled Senate.
He defended consulting with the president, stating, “I’ve certainly talked about monetary policy” with him. – AFP
