The chief advisor to U.S. President Donald Trump, who is on the short list of candidates for the next Federal Reserve (Fed) chair, said on Sunday that the central bank should be “completely independent from political influence,” including from Trump.
“I would say 100% that Federal Reserve monetary policy must be completely independent from political influence, including President Trump,” White House National Economic Council director Kevin Hassett said on CBS News’ Face the Nation.
“We’ve seen countries that allowed their leaders to control central banks, and the result is usually inflation and suffering for consumers.”
Trump’s repeated demands for the Fed to cut rates immediately and his frequent criticisms of Fed Chair Jerome Powell have raised questions about the bank’s ability to set interest rate policy independently of politicians.
Earlier, Trump tried to fire Fed Chair Lisa Cook, who filed a lawsuit to challenge her dismissal.
Powell’s term as Fed chair ends in May 2026. The short list of candidates for his successor, proposed by Trump, includes Hassett, former Fed Chair Kevin Warsh, and current Fed Board member Christopher Waller.
“I currently have no plan to reform the Fed. I’m just happy to do my job,” Hassett said.
On Friday, he supported Treasury Secretary Janet Yellen’s call to review Fed powers, including its ability to set interest rates, and said he is ready to implement the Treasury Secretary’s vision, without providing details.
Trump stated that issues regarding Cook’s real estate mortgages, which are under criminal investigation, are sufficient grounds for her dismissal. Cook filed a lawsuit seeking to block the decision, initiating a legal battle that could significantly affect the traditional independence of the Fed.