Kevin Hassett says Trump’s rate views “won’t influence” Fed decisions

He stressed that key monetary policy decisions will remain in the hands of the Federal Open Market Committee.

Hassett said the Fed’s role is to independently evaluate economic data, and any outside input — including from the president — can be considered only if it is “fact-based.” Even if Trump offers a well-reasoned position, he said, committee members will vote according to their own judgment.

His remarks come amid speculation about political pressure on the central bank. Trump is expected to announce his pick for Fed chair in mid-January. He recently said the shortlist has narrowed to two candidates: Hassett and former Fed governor Kevin Warsh.

Market expectations have shifted since late November. Hassett had been the clear favorite, with odds of about 85% on some prediction markets. After Trump’s latest interview, those odds fell — though Hassett still leads, with Warsh closing the gap.

Trump has said the next Fed chair should “listen” to his views on rates. In response, Hassett said consultation is possible, but the decision rests with the committee: the Fed must assess inflation risks, labor-market conditions, and the broader economic picture.

The crypto market barely reacted. Despite last week’s 25-basis-point rate cut, bitcoin and other assets traded sideways. Fed Chair Jerome Powell said short-term inflation risks remain elevated while employment risks have eased, making future policy moves harder to predict.

Trump also signaled he expects further rate cuts in 2026 — a view he said is shared by many of his economic advisers. Hassett maintains that even if those expectations are expressed publicly, the Fed is not obliged to follow a political agenda.