Hassett Says Fed Needs to Be Fully Independent from Trump

A top aide to U.S. President Donald Trump who is on his shortlist to be the next chair of the Federal Reserve said Sunday that the central bank must be “fully independent of political influence,” including from Trump, Reuters reported.

Trump’s shortlist of potential successors to Powell includes Hassett, former Fed Governor Kevin Warsh, and current Fed Governor Christopher Waller. (Photo: usbotschaftberlin Wikimedia Commons) 

“I would say 100% that monetary policy, Federal Reserve monetary policy, needs to be fully independent of political influence, including from President Trump,” White House National Economic Council Director Kevin Hassett told CBS News’ Face the Nation. 

“The fact is that we’ve looked at countries that have allowed leaders to take over central banks, and what tends to happen is that it’s a recipe for inflation and misery for consumers.”

Trump’s repeated demands that the Fed cut rates immediately and his frequent criticism of Fed Chair Jerome Powell have fueled concerns about the bank’s independence.

Questions have also intensified after Trump’s attempt to fire Federal Reserve Governor Lisa Cook, who has sued to challenge her dismissal.

Powell’s term as chair ends in May 2026. Trump’s shortlist of potential successors includes Hassett, former Fed Governor Kevin Warsh, and current Fed Governor Christopher Waller.