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Kevin Hassett, a leading contender to chair the Federal Reserve, said Sunday that the central bank’s policy decisions would remain free from political influence even as President Donald Trump prepares to name his pick for the role in mid-January.
Speaking on CBS News’ Face the Nation, Hassett addressed concerns about Fed independence after Trump told The Wall Street Journal he had narrowed his choice to two finalists: Hassett himself and former Fed governor Kevin Warsh. Trump also said the next Fed chair should consult with him on interest rate decisions, a statement that has raised questions among investors about the central bank’s autonomy.
When asked whether Trump’s views could carry weight inside the Fed, Hassett said they would not. He noted that any argument even from the White House would be evaluated strictly on data and debated by the Federal Open Market Committee’s 12 voting members, a process he said safeguards the Fed’s autonomy regardless of who becomes Trump fed chair nominee.
The contest to succeed current Fed Chair Jerome Powell has tightened following Trump’s recent remarks. In an interview with The Wall Street Journal, Trump said the shortlist had narrowed to two finalists: Hassett and former Fed governor Kevin Warsh, framing the choice as between “two Kevins” for the Trump fed chair nominee position.
Prediction markets have closely tracked the shifting dynamics. Earlier this month, platforms such as Kalshi and Polymarket showed Hassett with odds as high as 85% of becoming Trump fed chair nominee. Those probabilities slipped after Trump publicly praised Warsh. At the time of writing, Polymarket data showed Hassett leading with a 52% chance while Warsh followed at 39%.
Trump also reiterated that the next Fed chair should consult with him on interest rate decisions a stance that has drawn scrutiny from investors watching the Trump fed chair nominee process. Though according to him it is a process that’s not done anymore even though It used to be done routinely as it is not his intention to dictate policy, nonetheless, his views should be count.
The Federal Reserve cut interest rates by 25 basis points last Wednesday lowering the target range to 3.5%–3.75%. Cryptocurrency markets remained largely flat in the days following the move as traders adopted a wait and see approach tied partly to uncertainty around the Trump fed chair nominee and the future path of monetary policy.
At the Federal Open Market Committee meeting, Powell warned that policymakers face a difficult balance.
“In the near term, risks to inflation are tilted to the upside and risks to employment to the downside,” he said, noting there is “no risk free path for policy.”
Trump has signaled he wants further rate cuts in 2026, according to the Journal. Several remarks have continued to shape market expectations over who will ultimately emerge as the Trump fed chair nominee.
