'Hassett, Trump's Pick: "The President's Voice Is Just an Opinion... FOMC Votes"'

Kevin Hassett, NEC Chairman, Appears on CBS

Kevin Hassett, Chairman of the White House National Economic Council (NEC). Photo by AFP Yonhap News

Kevin Hassett, Chairman of the White House National Economic Council (NEC) and one of the leading candidates on the shortlist for the next Federal Reserve (Fed) Chair, stated on December 14 (local time) that the President's voice regarding Fed monetary policy is "just his opinion."

Appearing on CBS's "Face the Nation" that day, Chairman Hassett was asked whether the President's voice should be given the same weight as the votes of members of the Federal Open Market Committee (FOMC), who hold voting rights on monetary policy. He replied, "No. It is not given any additional weight," making his position clear.

Previously, President Donald Trump asserted on December 12 that he should have influence over the Fed's key interest rate decisions, stating, "My voice should be heard." This sparked concerns in the market that President Trump might intervene in the U.S. policy rate decision process.

President Trump has reportedly considered Chairman Hassett and former Fed Governor Kevin Warsh, among others, as potential successors to current Chair Jerome Powell, whose term expires in May next year. He is expected to nominate the next chair early next year and has already indicated, "I have a pretty good idea who I want," suggesting he has a specific individual in mind.

Chairman Hassett commented, "If it is a good opinion based on data, then the President's opinion is important. In that case, I would go to the (FOMC) committee and say, 'The President made this argument, and I think it's valid.' If they don't accept it, they will vote differently." He explained the process in this way.

Chairman Hassett also evaluated President Trump as "having very strong and well-founded views on what we should do," adding that, as his policy adviser, "I speak with him about everything almost every day, and of course, we have discussed monetary policy as well."

Nevertheless, he emphasized, "Ultimately, the Fed Chair's role is to exist independently and to reach a collective consensus on where interest rates should be, together with the group of board members who make up the FOMC. The final vote takes place in the committee (FOMC)."

He added, "Whether I become chair or not, I would enjoy talking to the President every day for the rest of my life, simply because it is so much fun to have those conversations."

Since his inauguration in January, President Trump has publicly pressured Chair Powell for months to lower interest rates. In April, he remarked that he could dismiss Powell early and even used insulting language, calling him a "stubborn and foolish person."