Kevin Hassett, director of the White House National Economic Council and a candidate on President Trump’s shortlist for Federal Reserve chair, said Sunday that the central bank must be "fully independent of political influence," including from the president.
On CBS News’ Face the Nation, Hassett said, "I would say 100% that monetary policy, Federal Reserve monetary policy, needs to be fully independent of political influence, including from President Trump." He warned that allowing political leaders to take control of central banks "tends to happen is that it’s a recipe for inflation and misery for consumers."
Hassett’s comments came amid mounting questions about the Fed’s ability to set interest rate policy without regard to politicians’ wishes. President Trump has repeatedly demanded immediate rate cuts and has publicly criticized Fed Chair Jerome Powell for his handling of monetary policy. Powell’s term as Fed chair is due to end in May.
Hassett is among several names under consideration to succeed Powell, along with former Fed Governor Kevin Warsh and current Fed Governor Christopher Waller. When asked about plans to overhaul the Fed, Hassett said, "I don't have a plan to overhaul the Fed right now. I'm just happy to do my job."
The White House aide also signaled support for renewed scrutiny of the central bank. He endorsed U.S. Treasury Secretary Scott Bessent’s recent call for closer examination of the Fed, including its authority to set interest rates, and said he would be prepared to implement the vision outlined by the Treasury secretary, though he declined to provide details.
The debate over the Fed’s independence has been heightened by the administration’s move to remove Federal Reserve Governor Lisa Cook. Trump has said questions about mortgages on properties Cook owns — which he has said are the subject of a criminal probe by his administration — provide grounds for dismissal. Cook has filed a lawsuit seeking to block her removal, setting up a legal battle that could upend long-established norms for the Fed’s independence.
Hassett’s remarks draw attention to competing pressures facing the next Fed chair: the need to maintain credibility and independence for the central bank while responding to political scrutiny over interest-rate decisions and governance. Economists and former central bankers generally cite long-standing central-bank independence as key to keeping inflation expectations anchored; Hassett referenced studies of countries that allowed political control of central banks when arguing against such a shift.
With Powell’s term ending in May, the administration must decide whether to nominate a successor who pledges to defend the Fed’s institutional independence or to pursue changes that critics say could increase political influence over monetary policy. The outcome of that decision, and of the lawsuit over Cook’s removal, will shape the central bank’s governance at a moment of sharp public and political focus on interest rates and economic management.
Hassett’s public defense of independence contrasts with the administration’s recent rhetoric toward the Fed and underscores the complex dynamics inside the White House as officials weigh nominations, legal challenges and the economic risks tied to monetary-policy credibility.
Officials and legal advisers inside and outside the administration are now watching two parallel developments: the selection of the next Fed chair and the resolution of the unprecedented legal challenge to a governor's removal. Both will carry implications for how the United States balances political oversight and central-bank autonomy going forward.