Top White House Advisor Hassett Urges Full Fed Independence Amid Trump Pressure

President Donald Trump's persistent pressure on the Federal Reserve to cut interest rates has raised concerns about the erosion of the Fed's historic independence, traditionally protected from political interference. White House National Economic Council Director Kevin Hassett, a candidate on Trump's shortlist to succeed Fed Chair Jerome Powell, emphasized that the Federal Reserve must remain fully independent, including from Trump himself, warning that political control of central banks typically leads to inflation and consumer hardship. Trump has also sought to remove Federal Reserve Governor Lisa Cook, who is legally challenging her dismissal, further fueling debates over the Fed's autonomy. Despite these controversies, Hassett stated he has no immediate plans to overhaul the Fed but supports calls for increased scrutiny of its powers, including control over interest rates. Powell's term as Fed chair ends in May 2026, with potential successors including Hassett, former Governor Kevin Warsh, and current Governor Christopher Waller. The ongoing tensions highlight the delicate balance between monetary policy and political influence under the current administration.