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4w ago

Hassett Backs Fed Independence as Trump Names Finalists to Succeed Powell

Financial leaders warn that eroding the central bank’s autonomy risks higher inflation expectations, raising long‑term borrowing costs.

National Economic Council Director Kevin Hassett listens to U.S. President Donald Trump, in the Oval Office, at the White House in Washington, D.C., U.S., September 5, 2025. Trump said that his short list of candidates to succeed Jerome Powell as chair of the Federal Reserve includes Kevin Hassett, director of the National Economic Council, and Treasury Secretary Scott Bessent. REUTERS/Brian Snyder/File Photo
The exterior of the Marriner S. Eccles Federal Reserve Board Building is seen in Washington, D.C., U.S., June 14, 2022. REUTERS/Sarah Silbiger/File Photo

Overview

  • President Trump identified Kevin Hassett, Christopher Waller and Kevin Warsh as his top contenders to replace Jerome Powell, whose term ends in May 2026, with the selection timeline still unclear.
  • Hassett said on CBS that Federal Reserve monetary policy must be fully independent of political influence, explicitly including from the president.
  • Treasury Secretary Scott Bessent is running the search for a successor and reiterated that he does not want the job.
  • Ken Griffin and economist Anil Kashyap cautioned in a Wall Street Journal op‑ed that political interference could raise inflation expectations and force higher long‑term rates for households, companies and the government.
  • Concerns over independence have intensified after Trump moved to fire Fed Governor Lisa Cook and nominee Stephen Miran said he would take leave rather than resign his White House role if confirmed, drawing Democratic criticism.