Hassett, on shortlist for Fed chair, says Trump’s voice ‘would have no weight’ in decisions

Kevin Hassett, President Trump’s National Economic Council director and a frontrunner for Fed chair, told CBS’s Face the Nation that while he would regularly consult with the president and value his views, Trump would have “no weight” in Fed interest-rate decisions and policy would be set by the independent FOMC; Hassett emphasized the Fed chair’s role in driving committee consensus. The remarks come as Trump said he is leaning toward Hassett or ex-Governor Kevin Warsh for the job and argued the chair should seek the president’s insight, underscoring the tension between the administration’s desire for influence and assurances of central-bank independence ahead of Jerome Powell’s term expiry in May.

Analysis

Kevin Hassett, currently White House National Economic Council director and on President Trump’s shortlist to chair the Federal Reserve, told CBS’s Face the Nation that he would regularly consult with the president but that the president would "have no weight" in Fed interest-rate decisions and that policy would be determined by the independent FOMC and the Fed chair driving committee consensus. Hassett said he values the president’s views as "very strong and well founded" and would continue daily discussions, but emphasized the institutional role of the board of governors and voting procedures in setting rates. The remarks follow President Trump telling The Wall Street Journal he is leaning toward Hassett or former governor Kevin Warsh and asserting the Fed chair should seek his insight, underscoring tension between White House preferences and central-bank independence. Markets are likely to read Hassett’s public emphasis on independence as stabilizing — the accompanying signals assign a mildly positive sentiment score of 0.25 and market impact score of 0.25 — yet the article also highlights existing political pressure on Chair Powell, whose term expires in May, as a risk to policy predictability.

Key Decisions for Investors

• Monitor the nomination and confirmation process closely and prioritize trading around clear signals from Fed governors and FOMC communications rather than presidential commentary
• Watch for shifts in public commentary from Hassett, the White House and FOMC members as leading indicators of policy tilt; treat assertions of independence as positive for credibility but remain alert to sustained political pressure
• Avoid making large, one-way duration or yield-curve bets based solely on White House statements; consider hedged or shorter-duration exposure until nomination and early Fed communications clarify likely voting dynamics