Background on Kevin Hassett and His Relevance
Kevin Hassett is the current Chairman of the Council of Economic Advisors (CEA) for President Donald Trump. With a PhD in economics from the University of Chicago, Hassett is well-versed in macroeconomic theory and has written extensively on various economic topics. His expertise and proximity to the President make him a frontrunner for the position of Federal Reserve (Fed) Chair, succeeding Jerome Powell whose term ends in May.
Hassett’s Stance on Independence and Trump’s Input
During an appearance on CBS’s Face the Nation, Hassett emphasized that the Fed’s primary mission is to demonstrate independence. However, he acknowledged that the President’s opinion “matters.” As Trump’s principal economic advisor, Hassett frequently communicates with the President on various matters, including monetary policy. He stated that he would consult Trump on policy decisions if chosen as the Fed Chair, though he stressed that the ultimate responsibility of setting interest rates would remain with the independent Fed.
Trump’s Preference for Fed Chair Candidates
On December 14, Trump narrowed his search for a new Fed Chair to two candidates: Kevin Warsh, a former Fed governor, and Hassett himself. In an interview with the Wall Street Journal, Trump expressed his inclination towards both candidates, describing them as “great.”
Trump asserted that the next Fed Chair should consult him on interest rate decisions, which would be an unprecedented move. Typically, Presidents refrain from interfering in monetary policy decisions, leaving them to the Fed’s independent governance.
“Normally, that’s not done. It used to be routine. It should be,” Trump stated. “That doesn’t mean I think I should dictate exactly what you say. But certainly, my voice should be heard and considered.”
Support for Kevin Warsh
Jamie Dimon, CEO of J.P. Morgan Chase, has publicly endorsed Kevin Warsh for the position of Fed Chair. Dimon’s support adds weight to Warsh’s candidacy, though Hassett remains a strong contender due to his close relationship with President Trump.
Key Questions and Answers
- Who is Kevin Hassett? Kevin Hassett is the Chairman of the Council of Economic Advisors for President Donald Trump, with a PhD in economics from the University of Chicago.
- Why is Hassett relevant for the Fed Chair position? Hassett’s expertise in economics, proximity to the President, and extensive writing on various economic topics make him a frontrunner for the position.
- What is Hassett’s stance on independence and Trump’s input? Hassett believes that the Fed must maintain independence, but he acknowledges that the President’s opinion is important. He would consult Trump on policy decisions if chosen as Fed Chair, while leaving interest rate decisions to the independent Fed.
- Who are Trump’s preferred candidates for Fed Chair? Trump has narrowed his search to Kevin Warsh and Kevin Hassett, both of whom he described as “great” in an interview with the Wall Street Journal.
- What does Trump expect from the next Fed Chair? Trump expects the next Fed Chair to consult him on interest rate decisions, which is an unprecedented move typically left to the independent Fed.
- Who supports Kevin Warsh for Fed Chair? Jamie Dimon, CEO of J.P. Morgan Chase, has publicly endorsed Kevin Warsh for the position of Fed Chair.
