Kevin Hassett Reaffirms Fed Independence as Markets Watch Rate Outlook

Kevin Hassett, a leading contender to chair the Federal Reserve (Fed), said the central bank would remain independent even if it faces pressure from the White House. His remarks come as financial and crypto markets watch closely for signals on interest rates and the future path of U.S. monetary policy.

Hassett Says He Would Listen to Trump—but Not Take Rate Instructions

Interest rate decisions, Hassett explained, would continue to be made by the Federal Open Market Committee rather than the president. Speaking as debate over the Fed’s independence resurfaces, he said committee members rely on economic data when casting votes on policy.

President Donald Trump recently said he “should have a role” in discussions with the central bank. Responding to those comments, Hassett said he would listen to the president’s views but would not treat them as directives.

Trump holds “very strong and well-founded views,” Hassett said, but those views would not override formal votes on the federal funds rate.

As head of the National Economic Council, Hassett already speaks with Trump daily. Those discussions often cover economic conditions, including monetary policy. That communication would continue if he became Fed chair, he said, but it would not carry decision-making authority within the committee.

Only arguments supported by economic data would be considered in policy discussions. Even then, Trump’s opinion would hold “no weight” compared with that of voting members. Hassett said the same standard applies to all outside voices.

Macro Signals Mixed as Inflation Lingers and Growth Accelerates

CBS moderator Margaret Brennan cited official data showing Consumer Price Index inflation at 3% year-over-year and personal consumption expenditures inflation at 2.8%. Hassett responded by pointing to item-level price charts that Trump referenced during a recent speech.

Prescription drug prices rose 9% during Joe Biden’s term and have declined 0.6% so far this year, Hassett said. Broader price relief, he added, often takes time to reach consumers, particularly after periods of political disruption such as government shutdowns.

On consumer strength, Hassett said the U.S. economy is expanding at a 4% pace. Income growth has increased by roughly $1,200 this year, he said, contributing to what he described as the strongest Black Friday on record. By contrast, real purchasing power declined by about $3,000 during the prior administration.

Hassett Flags Easing Food and Energy Prices as Fed Weighs Growth Outlook

Food and energy prices are also in focus, as they remain closely watched by voters and investors. Grocery costs rose from around $400 to $525 per month under Biden, according to Hassett. While prices have begun to ease this year, he said further improvement is still needed.

Hassett cited several policy measures related to trade and energy:

• Tariffs removed on certain imported food items.
• Taxes lifted on goods not produced domestically.
• Oil prices low enough to allow supply-related action.
• Stricter enforcement on Venezuelan oil flows.
• Reduced black-market shipments.

Lower oil prices give the administration flexibility to limit sanctioned crude exports without driving global prices higher, Hassett said. He added that exporting countries are already under economic pressure, limiting broader market impact.

Hassett also addressed the Fed’s view that job growth has slowed and surveys indicating weaker hiring expectations for 2026. He said surveys can be unreliable and pointed instead to household employment data as a clearer indicator.

October’s household survey data remains unavailable, making November’s report important for assessing labor market strength. Fed officials, Hassett said, continue to expect firmer growth once more complete data becomes available.

Trump has publicly named Hassett and former Fed governor Kevin Warsh as finalists for the Fed chair position. Hassett said his daily conversations with Trump would continue regardless of who is selected, adding that Warsh would likely do the same. He noted that Fed chairs regularly speak with policymakers and market participants, but external views do not outweigh committee decisions.