Reviewed by Gotrade Internal Analyst
Jakarta, Gotrade News - Kevin Hassett made it clear that the Fed can reject Donald Trump’s views if he becomes the chair. This statement drops amidst global market anxiety regarding the future of the central bank's independence.
Trump is currently screening candidates to replace Jerome Powell to lead the country's monetary policy next year. The President-elect has expressed a strong desire to slash the benchmark interest rate drastically.
Decision Making Mechanism
Hassett explained that the president’s opinion would only matter if it is based on solid economic data. As quoted by AP News, Hassett emphasized that Trump’s take does not hold automatic weight in decisions.
The policy committee will reject the president's arguments if they don't make sense for economic stability. The final say on interest rates remains in the hands of the committee members' votes.
Interest Rate Speculation
Trump wants rates down to the 1 percent level from the current position of around 3.6 percent. According to AP News, almost no economist backs such an extreme cut.
The Wall Street Journal reported that Kevin Warsh is also a strong rival against Hassett for this position. The market is watching closely as the Fed's policy direction will impact global investment flows.
Reference:
- AP News, Hassett says Federal Reserve can reject Trump’s views if he is chair. Accessed on December 15, 2025
- Featured Image: Shutterstock
Disclaimer
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