Kevin Hassett says Trump’s opinion would have ‘no weight’ on the FOMC

This is despite Trump repeatedly insisting that he should have a say in monetary policy. More recently, he said on Friday that his voice needs to be heard because “I’ve made a lot of money.”

In an interview Sunday on CBS Facing the nationHassett said Trump has “very strong and well-founded views,” but noted that the Fed is independent, with its chairman charged with leading consensus among other policymakers at the Federal Open Market Committee that sets interest rates.

He added: “But in the end, it is the committee that votes.” “And I would be happy to talk to the president every day until we die, because it’s a lot of fun to talk, even as chairman of the Federal Reserve if I’m not chairman of the Fed.”

Hassett said he hopes Kevin Warsh, the former Fed governor who is also being nominated to head the bank, will also talk to the president if he becomes Fed chairman.

Trump said to Wall Street Journal On Friday, Warsh was at the top of his list and said, “Both Kevins are great.”

The comment surprised Wall Street, which had overwhelming odds on Hassett as the front-runner. In the predictions market, Kalshi’s odds of being nominated fell to 50% from 80.6% earlier this month, while Warsh’s odds rose to 41% from 11%.

Trump has said he will nominate Fed chair in early 2026, and Powell’s term is set to end in May. Until then, the contenders will have enough time to present their case. According to magazineTrump met with Burch on Wednesday at the White House and pressed him on whether he could be trusted to support interest rate cuts.

When asked on Sunday whether Trump’s vote would carry equal weight to the voting members of the Federal Open Market Committee, Hassett replied: “No, it wouldn’t.”

He explained, “His opinion is important if it is good and if it is based on data.” “And then, if you go to the committee and say, ‘Well, the president has made this argument, and I think it’s a really sound argument. What do you think?’ “If they say no, they will vote differently.”

For his part, Hassett has regularly supported more easing and is one of the strongest economic alternatives to Trump. But since joining the second Trump administration, some of Hassett’s former colleagues have expressed concern about signs that he is serving more as a political loyalist.

He has become a regular presence in the news, defending Trump’s policy priorities, downplaying unfavorable data, and echoing the White House on everything from inflation to the legitimacy of federal statistics.

Meanwhile, the Fed’s early reappointment of the heads of its regional banks eased fears that the central bank will soon lose its independence as Trump continues to demand sharp interest rate cuts.

This happened after the administration floated a residency requirement for Fed chairs — an idea supported by Hassett — raising concerns that it was seeking a broader leadership change.

“If I’m reading this correctly, they have immunized the Fed from Trump,” Justin Wolfers, a professor of public policy and economics at the University of Michigan, wrote in an X post about the reset announcement.