Trump’s Pending Fed Pick Renews Debate Over Central Bank Freedom And Future Rate Strategy

Benzinga

Trump said he has chosen his next Federal Reserve chair but has not announced the nominee. Prediction markets place an 86% chance on Kevin Hassett, head of the National Economic Council and a longtime Trump adviser. Hassett’s close ties to Trump have raised concerns about Fed independence as Trump escalates criticism of Jerome Powell and seeks to remove Governor Lisa Cook. Economists told Al Jazeera that Hassett would likely support faster rate cuts, though not as aggressively as Trump wants.

Transcript

00:00It's Benzinga, bringing Wall Street to Main Street.

00:03Trump said he has decided on his pick for the next Federal Reserve chair,

00:06but has not yet named the nominee, according to Al Jazeera.

00:10Prediction market Calci put the odds of Kevin Hassett being selected at 86%.

00:14The Fed is the central bank of the US ROI, responsible for monetary policy,

00:20bank oversight, and financial stability, with interest rate setting as its most closely watched

00:24function. Hassett leads the National Economic Council and previously served as Trump's

00:29chief economist. He previously worked at the American Enterprise Institute,

00:34where he focused on tax and trade policy research and publications.

00:38Hassett's closeness to Trump has raised concerns about the Fed's independence,

00:42as Trump continues to criticize Jerome Powell and move to remove Governor Lisa Cook.

00:48Economists told Al Jazeera that Hassett would likely push for quicker rate cuts,

00:52but not to the extent Trump prefers.

00:54For all things money, visit Benzinga.com.

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