Fed Front-Runner Hassett Affirms Independence from Trump in Rate Decisions
Kevin Hassett, a leading candidate for Federal Reserve chair, has stated that former President Donald Trump would have no influence over interest rate decisions if Hassett is appointed. Hassett emphasized the importance of Fed independence, highlighting that monetary policy decisions are determined through the Board of Governors and the Federal Open Market Committee (FOMC).
Despite being regarded as dovish and likely to support the aggressive rate cuts sought by Trump to stimulate economic growth, Hassett advocates for looser monetary policy, including larger rate reductions. Current Polymarket odds suggest Hassett has about a 52% chance of nomination, ahead of Kevin Warsh, who holds 40% odds following a recent meeting with Trump that boosted his chances from earlier 13% levels.
Trump has publicly stated that he believes he should have a say in Fed rate decisions. Meanwhile, Jerome Powell's term as Fed chair is scheduled to end on May 15, creating uncertainty around the next leadership. Cryptocurrency investors, particularly Bitcoin bulls, are anticipating rate cuts to help maintain a bullish price trajectory in the coming months.
