Hassett: Fed will remain independent even if Trump voices opinions
Kevin Hassett, candidate for Federal Reserve chair and current National Economic Council director, reiterated that the Fed will remain independent and that President Trump’s views would not override Federal Open Market Committee votes on interest rates. Hassett said he regularly discusses policy with Trump but any presidential input would carry no formal weight unless supported by data and accepted by committee members. He defended the administration’s claims of easing inflation by citing item-level price moves (prescription drugs, gasoline, eggs, groceries) and argued deficits, trade flows and household income gains are driving inflation toward the Fed’s 2% target. Hassett noted the deficit is tracking about $600 billion below last year and the trade deficit has narrowed, while real incomes rose roughly $1,200 this year. On jobs, he said upcoming household-survey data will clarify labor-market strength ahead of 2026 and reiterated that nominees—including him and Kevin Warsh—would continue private conversations with the president but must present data-driven arguments to the committee.
Neutral
This development is primarily political and macroeconomic rather than crypto-specific. Hassett’s emphasis on Fed independence and data-driven policy reduces immediate uncertainty about a politically driven abrupt shift in US interest-rate policy — a factor that can influence risk assets, including cryptocurrencies. However, he did not promise rate cuts or hikes; he highlighted lower deficits, narrower trade gap and modest real income gains, which are mildly disinflationary signals. For crypto traders this suggests a neutral short-term impact: market volatility tied to fears of political interference is likely eased (supporting risk appetite), but no clear signal of easier monetary policy or liquidity expansion that would strongly boost crypto prices. Historically, explicit signals of Fed independence or reduced political interference tend to calm macro risk premiums; similar comments in the past led to short-lived stability in crypto markets, not sustained rallies. Longer term, if committee decisions follow the data Hassett cites and inflation continues toward 2%, conventional financial conditions could normalize—reducing speculative flows into high-risk assets over time. Traders should watch CPI/PCE prints, household survey employment data, and any concrete Fed guidance for clearer bullish or bearish implications.