TLDR
- Kevin Hassett, a leading candidate for Fed chair, stated that President Trump’s opinions would not influence Federal Reserve interest rate decisions
- Trump said the next Fed chair should consult with him on interest rates, though he doesn’t expect them to follow his exact guidance
- The race for Fed chair is between Kevin Hassett and Kevin Warsh, with Hassett currently leading at 52% odds on Polymarket
- The Fed cut interest rates by 25 basis points last Wednesday to a range of 3.5% to 3.75%
- Crypto markets remained flat following the rate cut despite typical expectations that lower rates benefit digital assets
Kevin Hassett, one of the top candidates to become the next Federal Reserve chair, said President Donald Trump’s views will hold no weight on interest rate decisions. Hassett made the comments during an interview on CBS News’ Face the Nation on Sunday.
LATEST: 🇺🇸 Kevin Hassett says President Trump will have no influence on Fed rate decisions. pic.twitter.com/Vykagyktlc
— Coinvo (@Coinvo) December 15, 2025
Trump is expected to announce his pick for the new Fed chair in mid-January. Current Fed Chair Jerome Powell’s term ends on May 15.
Hassett serves as Trump’s top economic adviser at the White House. He emphasized that the Fed must remain independent in its decision-making process.
“He would have no weight. It’s just his opinion matters if it’s good, if it’s based on data,” Hassett said. He explained that Fed decisions ultimately rest with the 12 members of the Federal Open Market Committee.
The comments come after Trump told The Wall Street Journal on Friday that the next Fed chair should consult with him on interest rates. Trump said this practice used to be routine and should return.
“I don’t think he should do exactly what we say. But certainly I’m a smart voice and should be listened to,” Trump stated in the interview.
Two Kevins Lead the Race
Trump indicated the race for Fed chair has narrowed to two finalists, both named Kevin. Kevin Warsh, a former Fed governor, and Hassett are the leading candidates.
During the Wall Street Journal interview, Trump said Warsh was at the top of his list. He described both candidates as “great” choices.
Prediction market odds have shifted in recent weeks. Hassett held an 85% chance of becoming Fed chair on platforms like Kalshi and Polymarket at the start of December.
Following Trump’s latest comments, Warsh’s odds increased sharply from 13% to 40%. Hassett currently leads at 52% on Polymarket and 50% on Kalshi.
Recent Rate Cut Fails to Lift Crypto
The Federal Reserve cut interest rates by 25 basis points last Wednesday. The new target range sits between 3.5% and 3.75%.
Crypto markets did not respond positively to the rate cut. Prices remained flat despite typical expectations that lower rates benefit digital assets like Bitcoin.
Jerome Powell warned of economic challenges during the Wednesday FOMC meeting. He noted that inflation risks tilt to the upside while employment risks tilt to the downside.
“There is no risk-free path for policy,” Powell said at the meeting. His comments suggest the Fed will proceed with caution on future rate decisions.
Hassett is viewed as dovish on monetary policy. He has supported larger interest rate cuts to boost economic growth.
Bitcoin investors hope continued rate cuts will support higher prices. The current market reaction suggests traders remain cautious about near-term economic conditions.
