Fed Chair nominee: Trump has no weight in interest rate decisions. Photo: Fortune.
Does Trump's voice carry no weight?
Kevin Hassett, President Donald Trump 's top economic adviser and the leading candidate for the Federal Reserve chairmanship , reassured markets that the central bank's independence would not be eroded if he were appointed, even amid increasing political pressure from the White House.
Speaking on CBS's Face the Nation , Hassett acknowledged that Trump has very strong and well-founded views on monetary policy. However, he affirmed that he would continue regular dialogue with President Trump if appointed, but that FOMC members still have full voting power based on economic data and expert assessments.
Hassett's remarks come amid recent statements by Trump that the president "should have a say" in interest rate decisions, even describing himself as an intelligent voice on monetary policy.
Democratic Senator Elizabeth Warren has criticized Trump-backed Fed nominees, arguing that they lack independence and risk becoming extensions of the President. She believes that the mere suspicion of political influence on the Fed is enough to damage the central bank's credibility and destabilize global financial markets.
A more "dovish" Fed under Hassett
Despite asserting institutional independence, Hassett is still considered by analysts to be a "moderate" candidate. He has long advocated for looser monetary policy to boost growth, and recently has shown openness to the possibility of deeper interest rate cuts , a view that aligns with Trump's desire to stimulate the US economy.
Therefore, under Hassett's leadership, the Fed may lean toward prioritizing growth and the labor market, rather than maintaining a hardline stance in the fight against inflation. For investors, this represents a strategic shift, especially given the US economy facing slowing growth and increasing political pressure.
In forecasting markets, Hassett currently leads with a 52% probability of becoming the next Fed chairman, according to data from Polymarket. He is followed by former Fed Governor Kevin Warsh with 40%, although Warsh's probability has surged from just 13% after his face-to-face meeting with Trump last week.
Source: Polymarket (December 15, 2025)
In its morning session on December 11th, the Fed announced its latest interest rate adjustment. As expected by experts and most investors, the Fed cut interest rates by another 0.25 percentage points. This marks the third consecutive interest rate reduction by the Fed, following the September and October meetings , indicating a clear shift in policy.
The prospect of the Fed soon shifting to a cycle of interest rate cuts is becoming a key anchor for risk assets. Bitcoin investors and the cryptocurrency market in general are betting that a more dovish monetary environment will sustain speculative Capital flows and support an upward trend in the coming months. Similarly, stock and bond markets are closely monitoring every signal from the Fed chairmanship race, viewing it as a key factor shaping global risk appetite.
Current Fed Chairman Jerome Powell's term is set to end on May 15, 2026, and the White House is reportedly in the final round of interviews with candidates. Amidst intertwined political pressure, market expectations, and inflation risks, Powell's successor will face not only the challenge of interest rates but also many other significant obstacles.
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