NextFin news, WASHINGTON — On Sunday, Kevin Hassett, director of the White House National Economic Council and a top economic adviser to President Donald Trump, stated that the Federal Reserve's monetary policy must remain fully independent of political influence, including from the president himself.
Speaking on CBS News' "Face the Nation," Hassett underscored the importance of central bank independence, saying, "I would say 100 percent that monetary policy, Federal Reserve monetary policy, needs to be fully independent of political influence... including from President Trump." He added that both Democrats and Republicans, as well as the White House, have historically agreed on this principle.
Hassett cited examples from other countries where political leaders have taken control of central banks, noting that such interference typically leads to inflation and economic hardship for consumers.
He also questioned whether the Federal Reserve under Chair Jerome Powell has been as independent and transparent as desired, acknowledging some debate on the matter. Powell, appointed by Trump during his first term, has faced criticism from the president for not lowering interest rates quickly enough. Powell's term is set to expire in May 2026.
Hassett, who is considered a potential candidate to succeed Powell as Fed chair, declined to comment on his prospects, stating he is focused on his current role.
The remarks were made in Washington, D.C., on Sunday, September 7, 2025.
Source: CBS News "Face the Nation" interview with Kevin Hassett, reported by News of Bahrain and The Edge Malaysia on September 8, 2025.
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