National Economic Council Director Kevin Hassett has accused the Fed of making monetary policy decisions based on politics, echoing previous claims from President Trump.
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“If you look at the pattern of the Fed movements over the last few years, you could wonder, were they putting politics ahead of their mandate?” said Hassett in an interview with Fox Business on Wednesday. He pointed out that the Fed cut rates before the 2024 presidential election in November but has held them steady in 2025. The Fed also reduced rates by 25 bps in December.
Hassett a Top Contender to Replace Powell
Hassett is a top candidate to replace Fed Chair Jerome Powell when his term expires in May 2026. Hassett has a 22% chance of being selected by Trump for the position before December 31 on prediction platform Polymarket. He trails former Fed Governor Kevin Warsh, who has a 28% chance. Fed Governor Christopher Waller, who voted for a rate cut at the July Federal Open Market Committee (FOMC) meeting, trails Hassett with a 15% chance.
At the same time, the odds that Trump doesn’t select a Fed Chair replacement by December 31 are at 31%.
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