Overview
- Kevin Hassett said on CBS’ Face the Nation that the president’s views would carry “no weight” in FOMC decisions, stressing the Fed’s independence and consensus process.
- Trump named Hassett and former Fed governor Kevin Warsh as his top contenders and has argued the next chair should consult him on rates.
- Prediction-market odds swung sharply, with Hassett falling from roughly 80% to about 50% and Warsh climbing into the 40% range on platforms such as Kalshi and Polymarket.
- Sources told CNBC that some high-level figures close to Trump have pushed back on Hassett, warning markets could worry he is too close to the president.
- The backdrop includes last week’s 25-basis-point rate cut to a 3.5%–3.75% target range, with Jerome Powell saying he aims to leave the economy in strong shape and remaining chair until May 2026.