{"id":1878,"date":"2025-12-15T10:38:20","date_gmt":"2025-12-15T15:38:20","guid":{"rendered":"https:\/\/www.decentralnetwork.org\/news\/?p=1878"},"modified":"2025-12-15T10:38:23","modified_gmt":"2025-12-15T15:38:23","slug":"hassett","status":"publish","type":"post","link":"https:\/\/www.decentralnetwork.org\/news\/hassett\/","title":{"rendered":"Hassett Stresses Fed Independence as Trump Eyes \u201cTwo Kevins\u201d for Chair"},"content":{"rendered":"\n

\"Hassett — *Image source:Al Drago\/Bloomberg<\/em><\/figcaption>\n<\/figure>\n\n\n\n
Kevin Hassett has moved into the spotlight as a top contender to lead the U.S. Federal Reserve,<\/a> and he\u2019s already making one thing clear: politics shouldn\u2019t drive monetary policy.<\/h2>\n\n\n\n
Speaking on CBS News\u2019 Face the Nation<\/em> 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\u2019s structure is designed to keep policy grounded in data\u2014not political opinion.<\/p>\n\n\n\n
Asked directly whether a president\u2019s 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.<\/p>\n\n\n\n
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\u2019s independence regardless of who occupies the White House.<\/p>\n\n\n\n
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<\/em> that the shortlist has been cut down from four candidates to just two: Kevin Hassett and former Fed governor Kevin Warsh.<\/p>\n\n\n\n*
Trump spoke positively about both men, jokingly calling them \u201cthe two Kevins\u201d and saying they are both \u201cgreat.\u201d When asked whether Warsh was at the top of his list, Trump said he believed that might be the case.<\/p>\n\n\n\n
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%.<\/p>\n\n\n\n
Trump has also made it clear that he believes the Fed chair should consult with him on interest rate decisions\u2014something that is no longer standard practice. While he said he doesn\u2019t expect the chair to follow orders, Trump described himself as \u201ca smart voice\u201d that should be heard.<\/p>\n\n\n\n
Meanwhile, the Fed last week delivered a 25 basis point rate cut, lowering the benchmark range to 3.5%\u20133.75%. The move had little immediate impact on crypto markets, which largely traded sideways following the decision.<\/p>\n\n\n\n
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 \u201cno risk-free path for policy.\u201d<\/p>\n\n\n\n
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\u2014a 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.<\/p>\n\n\n\n
*Also Read:**\u00a0<\/a> Barclays Warns 2026 Could Be a Slow Year for Crypto Trading<\/a><\/p>\n\n\n\n*
*<\/p>\n","protected":false},"excerpt":{"rendered":"*
*Kevin Hassett has moved into the spotlight as a top contender to lead the U.S. Federal Reserve, and he\u2019s already … <\/p>\n*
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