Kevin Hassett Prepares to Navigate Trump's Influence as Potential Fed Chair

As the Federal Reserve's next chair, Kevin Hassett is prepared to navigate a delicate dance with the White House, where President Donald Trump's opinions on monetary policy have often been loud and clear. But Hassett, one of the top contenders for the job, is downplaying the president's influence, saying his views would "have no weight" on the rate-setting Federal Open Market Committee. Hassett's comments, made in an interview on CBS Face the Nation, come as Trump has repeatedly expressed his desire to have a say in setting interest rates, citing his own business acumen as a reason for his expertise. "Ive made a lot of money," Trump said Friday, in a statement that has raised eyebrows among economists and policymakers. Despite the president's assertions, Hassett is adamant that the Fed's independence is sacrosanct. "The Fed is independent, with the chairman tasked with driving consensus among other policymakers on the rate-setting Federal Open Market Committee," he explained. "And in the end, it's a committee that votes." Hassett's stance is not surprising, given his background as a economist and his experience serving as the National Economic Council Director under Trump. But his willingness to engage with the president, even if it's just for the sake of conversation, is a testament to his commitment to maintaining a positive working relationship with the White House. "I'd be happy to talk to the president every day until both of us are dead because it's so much fun to talk," Hassett said with a chuckle. "Even if I were Fed chair or if I wasn't Fed chair." Hassett added that he hopes his colleague, Kevin Warsh, a former Fed governor who is also being considered for the chairmanship, would also engage with the president if he becomes Fed chief. Trump's comments on monetary policy have been a source of controversy in the past, with some critics accusing him of trying to exert undue influence over the Fed. But Hassett's comments suggest that he is committed to maintaining the Fed's independence, even if it means navigating a complex and sometimes contentious relationship with the White House. Experts say that Hassett's approach is a pragmatic one, given the reality of the situation. "The Fed's independence is a key aspect of its credibility and effectiveness," said Mark Zandi, chief economist at Moody's Analytics. "While it's understandable that the president wants to have a say in monetary policy, it's ultimately up to the Fed to make decisions based on its own analysis and expertise." Hassett's comments also highlight the importance of maintaining a positive working relationship with the White House, even if it's not always easy. "The Fed and the White House need to work together to achieve their goals, whether it's promoting economic growth or maintaining financial stability," said David Wilcox, a former Fed economist who is now a senior fellow at the Peterson Institute for International Economics. As the search for a new Fed chair continues, Hassett's comments offer a glimpse into the complex dynamics at play. While the president's opinions may carry weight in some quarters, Hassett is clear that the Fed's independence is non-negotiable. And as he prepares to take on the role of Fed chair, he's ready to navigate the delicate dance between the White House and the Fed, all while maintaining a commitment to the institution's independence and expertise. In the end, Hassett's approach may be a winning formula for the Fed, one that balances the need for independence with the need for effective communication and collaboration with the White House. As he takes on the role of Fed chair, he'll be navigating a complex and sometimes contentious landscape, but with his commitment to the Fed's independence and expertise, he's well-equipped to succeed.