Hassett says Fed will stay independent despite Trump pressure
Federal Reserve chairman contender Kevin Hassett has once again repeated that the central bank will stay independent even if he ends up as chair.
He said he would hear President Trump out because the president has “very strong and well-founded views,” but the rate path would still come from the Federal Open Market Committee.
He also said Trump’s opinions would not override the votes of the policymakers who set the federal funds rate. He made that point after Trump said he “should have a role” in speaking to whoever is running the central bank.
Hassett explained that he already talks to Trump every day as the head of the National Economic Council and said he discusses monetary policy with him now.
He said that would not change if he became Fed chair, though the conversations would not carry any formal weight.
He added that Trump’s view could be raised inside the committee only if it is backed by data. He was also clear that the president’s voice would have “no weight” compared with voting members.
Reporting inflation and spending claims
Margaret Brennan pressed Hassett on the administration’s claim that prices are dropping. She pointed to the Consumer Price Index rising 3% year over year and the personal consumption index rising 2.8% year over year.
Hassett said Trump showed charts during a speech in Pennsylvania that tracked item-level changes. He said prescription drugs rose 9% under Joe Biden and are now down six-tenths of a percent this year.
He said gasoline fell from record highs and said Trump also pointed to eggs during that event. He said inflation came from micro shocks like avian flu and macro drivers like large deficits and an accommodative Fed. He said tariff effects are “mixed.”
Hassett said the deficit is on track to come in $600 billion lower than last year and said the trade deficit is half of what it was. He said those numbers move inflation toward the Fed’s 2% target.
Margaret asked when voters would feel the impact. Hassett said sentiment usually drops during government shutdowns and said the economy has 4% growth. He said income growth is up about $1,200 this year and that strong wallets helped produce the biggest Black Friday. He said real purchasing power fell by about $3,000 under Biden and is now up $1,200 this year.
Hassett pointed out that groceries went from $400 to $525 per month under Biden and said the cost is down this year but still has room to fall. He said tariffs were cut on some food items and said, “If we don’t make it here, then we don’t tariff it.”
He also said oil prices are low enough that the administration has room to act against Venezuelan oil flows.
He said he is “not a foreign policy guy,” but said black-market oil shipments keep sanctioned countries afloat and the U.S. is slowing those fleets. He said he does not expect global prices to move because those nations “are already on the ropes.”
Addressing jobs data and Fed short list
Margaret then asked about the Fed’s statement that job gains slowed and about CEOs expecting lower hiring in 2026. Hassett said the Fed sees stronger growth ahead and said the upcoming data would give a clearer picture.
He said surveys are hard to pin down and said the household survey is the one he trusts. He said the October household survey is missing, but November’s release will matter for judging the job market.
Margaret also asked about Trump naming him and Kevin Warsh as finalists for Fed chair. She played Trump’s comment that he should “have a role” in speaking to the Fed. Hassett said he already talks to Trump daily and said he enjoys those talks.
He said he would keep speaking with Trump “even if I were Fed chair or if I wasn’t Fed chair.” He said he would expect Warsh to do the same if Warsh is selected.
Hassett said every Fed chair speaks with market experts, but stressed again that Trump’s opinion would not outweigh a voting member. He said the only thing he can do is take a sound argument to the committee and let the panel decide.
Get seen where it counts. Advertise in Cryptopolitan Research and reach crypto’s sharpest investors and builders.
You May Also Like
The Channel Factories We’ve Been Waiting For
SOLANA NETWORK Withstands 6 Tbps DDoS Without Downtime
