Hassett Says Trump’s Interest Rate Opinions Won’t Influence the Fed

One of Trump’s selections for the Fed chair, Kevin Hassett, affirmed that determinations regarding interest rate reductions are solely up to the Federal Reserve board and will not be influenced by U.S. President Donald Trump.

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Fed Chair Race Narrows to a Showdown Between Two Kevins
Crypto Markets Stay Flat Even After Fed Rate Cut

Kevin Hassett, a prominent candidate to succeed the incumbent chair of the U.S. Federal Reserve, has minimized apprehensions that U.S. President Donald Trump could influence the Fed, firmly stating that Trump’s opinions will hold “no bearing” on the agency’s rulings.

With the declaration of the next Fed chair anticipated in mid-January, certain individuals harbor misgivings that Trump is endeavoring to proliferate his influence throughout the agency by replacing the majority of decision-makers on the Federal Open Market Committee (FOMC).

During an interview on CBS News’ Face the Nation on Sunday, Hassett underscored that the responsibility of the Fed is to remain “autonomous” and allow the 12 participants of the Federal Market Committee to make the ultimate decision.

“No, no, he would have no weight. It’s just his opinion matters if it’s good, you know, if it’s based on data,” he said
“And then if you go to the committee and you say, well, the president made this argument and that’s a really sound argument, I think, what do you think? If they reject it, then they’ll vote in a different way.”
he said, adding:

Fed Chair Race Narrows to a Showdown Between Two Kevins

On Friday, Trump signaled that the competition for the upcoming Fed chair is being headed by two of the four contenders currently being evaluated — former Fed governor Kevin Warsh and Hassett.

In a dialogue with The Wall Street Journal on Friday, Trump conveyed that Warsh was situated at the apex of his considerations.

“Yes, I think he is,” Trump said, adding, “I think you have Kevin and Kevin. They’re both — I think the two Kevins are great,”
he said.

At the commencement of this month, the likelihoods on forecasting venues such as Kalshi and Polymarket had assessed Hassett at an 85% probability of assuming the forthcoming Fed chair position; nevertheless, the odds have now diminished substantially following Trump’s most recent pronouncements.

At the moment of composition, Hassett still maintains the lead on Kalshi with odds of 50%, with Warsh placed in second position at 39%.

During the Wall Street Journal discussion, Trump further expressed that the subsequent Fed chair should seek counsel from him for recommendations regarding the establishment of interest rates.

“Typically, that’s not done anymore. It used to be done routinely. It should be done,”
he said.

“I don’t think he should do exactly what we say. But certainly we’re — I’m a smart voice and should be listened to,”
Trump added.

Crypto Markets Stay Flat Even After Fed Rate Cut

Last Wednesday, the Federal Reserve cut key interest rates by 25 basis points to a target bracket of 3.5% to 3.75%; however, this action has not proven to be a benefit for cryptocurrency markets, with valuations continuing to be static.

Remarks from the current Federal Reserve chair, Jerome Powell, indicate that while the Fed is not adopting a restrictive stance, a careful approach is being maintained.

“In the near term, risks to inflation are tilted to the upside and risks to employment to the downside, a challenging situation. There is no risk-free path for policy,”
Powell said at the Wednesday FOMC meeting.

Regarding the forthcoming chair, Trump has signaled his desire for additional reductions in interest rates in 2026, a move which could stimulate optimistic movement within the cryptocurrency sectors.

“He believes that interest rates must be decreased,” Trump stated concerning Warsh during his conversation with The Wall Street Journal.