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Hassett Says Trump Would Have ‘No Weight’ in Fed Decisions as Chair Race Tilts Toward Warsh

Powell remains chair through May 2026, limiting any immediate shift in policy.

Overview

  • Kevin Hassett said on CBS that the president’s opinions on interest rates would carry no weight with the Federal Open Market Committee if he were chair.
  • He added that he would consult frequently with the president and present his arguments, yet FOMC members could reject those views when voting.
  • President Trump has named Kevin Warsh and Hassett as his top candidates to replace Jerome Powell and has urged sharp cuts toward a 1% policy rate.
  • Prediction-market odds shifted, with Hassett’s probability on Kalshi falling to about 50% from 80.6% and Warsh rising to roughly 41% from 11%.
  • Powell said he wants to hand over the job with the economy in really good shape and is set to complete his term in May 2026.