Kevin Hassett, one of the contenders for the position of Chairman of the Federal Reserve System of the United States, stated that Trump's opinion "will carry no weight" in the decision-making about interest rates. Quite a bold statement for someone who wants to get the position from Trump himself, isn't it?
On December 14, in an interview with CBS News on Face the Nation, Hassett emphasized that the Fed must remain "independent," and the final word rests with the 12 members of the Federal Open Market Committee (FOMC).
"No, no, it won't carry any weight. Its opinion only matters if it is well-founded, if it is based on data," Hassett stated. He added that if the president presents a convincing argument to the committee, the FOMC members will decide for themselves whether to accept it or not.
The race of the "two Kevins"
On December 12, Trump indicated that the fight for the Fed chair position comes down to two of the four finalists — former Fed governor Kevin Warsh and Hassett himself.
In an interview with The Wall Street Journal, Trump named Warsh as the leader of his list. "Yes, I think he’s at the top," said the president, adding: "I think you have Kevin and Kevin. Both — I think both Kevins are great."
In early December, on prediction markets like Kalshi and Polymarket, Hassett had an 85% chance of becoming the next Fed chair. However, after Trump’s latest comments, his positions significantly weakened.
At the time of writing, Hassett still leads on Kalshi with a 50% chance, while Warsh is in second place with 39%.
During an interview with the WSJ, Trump stated that the next Fed chair should consult with him regarding interest rate decisions. "This is usually not done anymore. It used to be common practice. This should be done," he said.
"I don't think he should do exactly what we say. But, certainly, we — I am a smart voice, and I should be listened to," Trump added.
The rate cut did not lead to a Bitcoin rally
On December 10, the Fed cut the interest rate by 25 basis points to a target range of 3.5-3.75%. However, this did not become a gift for the cryptocurrency markets — prices remain at the same level.
Comments from current Fed Chair Jerome Powell indicate that the regulator remains cautious. "In the short term, the risks for inflation are tilted to the upside, and the risks for employment are tilted to the downside. This is a complicated situation. There is no risk-free path for policy," Powell stated at the FOMC meeting.
Trump indicated that he wants further rate cuts in 2026, which could stimulate a bullish movement in the cryptocurrency markets. "He believes that the interest rate should be lowered," Trump said about Warsh in a conversation with the WSJ. "And so do all the others I've talked to," he added.
The announcement of the new Fed chair is expected in mid-January. Regardless of who gets the position, Hassett's statements about the independence of the central bank show that even candidates close to Trump understand the importance of maintaining the autonomy of the financial regulator.
AI Opinion
Analyzing historical patterns of presidents' interactions with the Fed, it is noteworthy that declarations of central bank independence often diverge from actual practice. The Nixon, Reagan, and even Obama administrations demonstrated varying degrees of political pressure on monetary policy, especially during economic crises.
Considering the situation through the lens of market dynamics, the current "calm" in the cryptocurrency markets after the rate cut may signal deeper structural changes. Institutional investors may have already priced in expectations of further policy easing into asset prices, which explains the absence of sharp movements. The key question is whether the cryptocurrency market can maintain its relative independence from traditional monetary policy, given the growing correlation with macroeconomic factors.
