Kevin Hassett Says Trump's Opinion Would Have 'No Weight' On Interest Rate Decisions If He Becomes Fed Chair

Kevin Hassett, the current National Economic Council Director and a potential candidate for the position of Federal Reserve chair, has downplayed the influence of President Donald Trump on interest rate decisions.

Only Data-Driven Views Matter, Says Hassett

In an interview with CBS’ Face the Nation on Sunday, Hassett stated that Trump’s views would not carry much weight in the decision-making process for interest rates, should he be appointed as the Fed chair.

When asked on Sunday whether Trump's voice would carry equal weight to voting members on the FOMC, Hassett said it would not, adding, "No, he would have no weight."

Hassett said that the president’s opinion matters if it is good and based on data. He added that if someone goes to the committee and says the president made a really sound argument, asks what they think, and if they reject it, they would then vote differently.

The potential Fed Chairman candidate said that Trump’s views are "very strong” and “well founded.”

Hassett also expressed his willingness to engage in regular discussions with Trump, emphasizing the independence of the Fed and the chairman’s responsibility to build consensus among other policymakers.

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Fed Independence In Focus

Hassett’s comments come amid speculation over the next Federal Reserve chair. Trump recently indicated that the decision has narrowed down to two primary candidates, Hassett and former Fed governor Kevin Warsh. Trump told The Wall Street Journal that the next Fed chair should consult with him on interest rate decisions, saying the practice was once routine, while adding that he does not expect the chair to follow his views but believes his input should be heard.

These remarks also follow the Federal Reserve Board’s unanimous approval of the reappointment of all 12 regional Reserve Bank presidents and first vice presidents, a move widely seen as a strategic effort to insulate the central bank from political interference.

Amidst these developments, the Federal Reserve’s January rate cut odds have seen a significant shift following Chair Jerome Powell‘s signal that the Committee will “wait and see” how the economy evolves.

Market expectations shifted sharply toward a January pause, with Polymarket showing an 82% chance of no rate change and just 18% odds of a 25-basis-point cut, while the CME FedWatch Tool also leaned toward a hold.

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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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