Trump Unable To Pick Powell’s Replacement?

White House National Economic Council Director Kevin Hassett, a top contender to become the next chairman of the Federal Reserve, made clear Sunday that President Donald Trump would not control interest rate decisions if Hassett were selected to lead the central bank.

Appearing on CBS News’ Face the Nation, Hassett stressed that the Federal Reserve must remain independent, even as President Trump has argued that future Fed leadership should at least consider the president’s economic perspective when setting monetary policy.

Hassett, who currently serves as President Trump’s chief economic adviser, said he regularly discusses economic issues with the president and respects his views—particularly on inflation, growth, and interest rates. Still, Hassett emphasized that final decisions would remain with the Federal Reserve’s policy-making committee.

“I speak with the president about economic matters almost every day, including monetary policy,” Hassett said. “He has strong, well-founded views based on data. But the Federal Reserve is structured to operate independently.”

How Interest Rates Are Actually Decided

Hassett explained that the Fed chair works alongside the Board of Governors and the Federal Open Market Committee (FOMC), which collectively votes on interest rate changes that impact mortgages, savings accounts, and retirement investments.

“The Fed chair helps guide discussion,” Hassett said, “but interest rate decisions are made by a committee vote. That process exists to protect economic stability and long-term confidence.”

While joking that he would happily continue discussing economic policy with President Trump “every day for the rest of our lives,” Hassett clarified that such conversations would remain informal.

When asked whether President Trump’s opinion would carry the same weight as Fed voting members, Hassett answered directly: “No.”

“The president does not vote,” Hassett said.

Trump Wants His Voice Heard—Not Absolute Control

Hassett noted that presidential input could still be shared with the committee if supported by strong economic data, but it would ultimately be up to Fed officials to decide.

“If the argument is sound, it can be presented,” he said. “But if the committee disagrees, they vote accordingly.”

In an interview with The Wall Street Journal, President Trump said he is considering Hassett or former Federal Reserve Governor Kevin Warsh to replace current Fed Chair Jerome Powell, whose term expires in May.

Trump argued that presidents were once routinely consulted on interest rate policy—and that practice should return.

“That used to be done all the time,” Trump said. “It doesn’t mean the Fed chair takes orders. But a president’s perspective should be heard.”

Trump, Powell, and the Economy

President Trump has repeatedly criticized Jerome Powell for keeping interest rates too high for too long, arguing that faster rate cuts could have strengthened economic growth and lowered costs for American families.

Powell, who was nominated by Trump during his first term, is expected to step down next spring—opening the door for a new Fed chair who could shape inflation policy, borrowing costs, and the economy for years to come.