Possible Powell's successor: Fed must have full independence from the president

The federal reserve must be fully independent of the political influence, including President Trump – said on Sunday the director of the National Economic Council in the White House and the potential candidate for the new president of Fed Kevin Hassett. He estimated that lack of independence could lead to high inflation.

Hassett, who, according to Donald Trump, is one of three people considered as the successor of Jerome Powell at the head of the Central Bank, was asked about the views on this subject in an interview on CBS television.

– I would say 100 percent that monetary policy, a monetary policy of a federal reserve, must be fully independent of political influence, including President Trump – said Hassett. – The fact is that we looked at the countries that allowed their leaders to take control of central banks and usually it turns out that this is a recipe for inflation and pain for consumers – he added.

The issue of the future independence of the Central Bank came to the fore in the face of pressure and insults directed by the president towards the current Fed President Jerome Powell to lower interest rates.

In the past week, similar answers to the same topic were given by Stephen Miran, chairman of the President's Economic Advisors Council, who was nominated by Trump to take the position of one of the governors of the Federal Reserve. During hearing in the Senate, Miran admitted that the president liked his views, but that he would be independent, although at the same time he announced that he would not give up his position in the White House.

Miran will replace Adriana Kugler for the rest of the term (until January 2026), who suddenly gave way to unexplained circumstances. Trump also strives to dismiss another member of the Federal Reserve Governors, Lisy Cook, which he accused of fraud while applying for a mortgage.

Powell's term of office as the chairman of the Federal Reserve is to be completed in May 2026. As Trump said on Friday, on the short list of Trump candidates for his successor are Hassett, former Governor of the Federal Reserve Kevin Warsh and the current member of the Council of Governors Christopher Waller, who was in favor of prior reduction of interest rates. The finance minister Scott Bessent was also to be the candidate, but he refused to change his job.

Hassetstt said on Sunday that there is currently no plan to reconstruct the FED, but supported the reform plan presented by Bessent.

From Washington Oskar Górzyński (PAP)

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