Kevin Hassett has moved into the spotlight as a top contender to lead the U.S. Federal Reserve, and he’s already making one thing clear: politics shouldn’t drive monetary policy.
Speaking on CBS News’ Face the Nation on Sunday, Hassett pushed back against concerns that the White House could influence Fed decisions if he were appointed chair. While President Donald Trump has been vocal about interest rates and the economy, Hassett said the Fed’s structure is designed to keep policy grounded in data—not political opinion.
Asked directly whether a president’s views could sway decisions inside the central bank, Hassett replied bluntly that they would not. According to him, an argument only matters if it is supported by strong economic evidence. The Federal Open Market Committee (FOMC), which sets policy, votes based on analysis and debate among its 12 members, not on who made the suggestion.
Hassett explained that even if a president puts forward an idea, it still has to survive scrutiny from the committee. If members disagree, they simply vote another way. That process, he said, protects the Fed’s independence regardless of who occupies the White House.
An official announcement on the next Fed chair is expected around mid-January, and the race appears to be narrowing. Trump recently told The Wall Street Journal that the shortlist has been cut down from four candidates to just two: Kevin Hassett and former Fed governor Kevin Warsh.
Trump spoke positively about both men, jokingly calling them “the two Kevins” and saying they are both “great.” When asked whether Warsh was at the top of his list, Trump said he believed that might be the case.
The tightening race has been closely followed by prediction markets. Earlier this month, platforms like Kalshi and Polymarket showed Hassett as the overwhelming favorite, with odds reaching as high as 85%. However, after Trump publicly praised Warsh, those numbers shifted. At the time of writing, Polymarket showed Hassett leading with a 52% chance, while Warsh trailed at 39%.
Trump has also made it clear that he believes the Fed chair should consult with him on interest rate decisions—something that is no longer standard practice. While he said he doesn’t expect the chair to follow orders, Trump described himself as “a smart voice” that should be heard.
Meanwhile, the Fed last week delivered a 25 basis point rate cut, lowering the benchmark range to 3.5%–3.75%. The move had little immediate impact on crypto markets, which largely traded sideways following the decision.
Fed Chair Jerome Powell acknowledged the difficulty of the current environment, noting that inflation risks remain tilted upward while employment risks lean lower. He described the situation as one with “no risk-free path for policy.”
Looking ahead, Trump has signaled he wants even deeper rate cuts in 2026. Referring to Warsh, he said the former governor believes rates should come down—a view Trump claims is widely shared in his conversations. For now, markets, including crypto, appear to be taking a wait-and-see approach as the leadership question remains unresolved.
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