Fed’s Independence Unshaken: Hassett Asserts No Trump Pressure Will Sway Central Bank

The Federal Reserve stands its ground. According to top economist Kevin Hassett, the central bank's independence remains ironclad, impervious to political pressure—even from a former president known for his strong opinions on interest rates.

Why This Matters for Your Wallet

Central bank autonomy isn't just a dusty principle from an economics textbook. It's the bedrock of market stability. When traders believe the Fed is making decisions based on data, not political whims, it anchors everything from Treasury yields to your 401(k). A politicized Fed? That's a one-way ticket to volatility city—a place where only the hedge funds have good maps.

The Unspoken Market Signal

Hassett's confidence sends a clear message to the trading floors: the old rules still apply. The institution designed to be the 'adult in the room' plans to keep playing that role, regardless of who's making noise outside the door. For crypto, this is a double-edged sword. A predictable, independent Fed means less chaotic macro surprises, which is good. It also means traditional finance's pillar of stability isn't crumbling anytime soon, which might disappoint those betting on a full-system breakdown to fuel the digital asset revolution. After all, nothing disrupts a disruptor like a competent incumbent.

So, while the political theater continues, the money printers—and their brakes—remain in technocratic hands. For now.

Reporting inflation and spending claims

Margaret Brennan pressed Hassett on the administration’s claim that prices are dropping. She pointed to the Consumer Price Index rising 3% year over year and the personal consumption index rising 2.8% year over year.

Hassett said Trump showed charts during a speech in Pennsylvania that tracked item-level changes. He said prescription drugs ROSE 9% under Joe Biden and are now down six-tenths of a percent this year.

He said gasoline fell from record highs and said Trump also pointed to eggs during that event. He said inflation came from micro shocks like avian flu and macro drivers like large deficits and an accommodative Fed. He said tariff effects are “mixed.”

Hassett said the deficit is on track to come in $600 billion lower than last year and said the trade deficit is half of what it was. He said those numbers MOVE inflation toward the Fed’s 2% target.

Margaret asked when voters would feel the impact. Hassett said sentiment usually drops during government shutdowns and said the economy has 4% growth. He said income growth is up about $1,200 this year and that strong wallets helped produce the biggest Black Friday. He said real purchasing power fell by about $3,000 under Biden and is now up $1,200 this year.

Hassett pointed out that groceries went from $400 to $525 per month under Biden and said the cost is down this year but still has room to fall. He said tariffs were cut on some food items and said, “If we don’t make it here, then we don’t tariff it.”

He also said oil prices are low enough that the administration has room to act against Venezuelan oil flows.

He said he is “not a foreign policy guy,” but said black-market oil shipments keep sanctioned countries afloat and the U.S. is slowing those fleets. He said he does not expect global prices to move because those nations “are already on the ropes.”

Addressing jobs data and Fed short list

Margaret then asked about the Fed’s statement that job gains slowed and about CEOs expecting lower hiring in 2026. Hassett said the Fed sees stronger growth ahead and said the upcoming data would give a clearer picture.

He said surveys are hard to pin down and said the household survey is the one he trusts. He said the October household survey is missing, but November’s release will matter for judging the job market.

Margaret also asked about Trump naming him and Kevin Warsh as finalists for Fed chair. She played Trump’s comment that he should “have a role” in speaking to the Fed. Hassett said he already talks to Trump daily and said he enjoys those talks.

He said he would keep speaking with Trump “even if I were Fed chair or if I wasn’t Fed chair.” He said he would expect Warsh to do the same if Warsh is selected.

Hassett said every Fed chair speaks with market experts, but stressed again that Trump’s opinion would not outweigh a voting member. He said the only thing he can do is take a sound argument to the committee and let the panel decide.

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