White House adviser Hassett: Fed independence is really important

BY Reuters | ECONOMIC | 12/16/25 09:52 AM EST

WASHINGTON, Dec 16 (Reuters) - White House economic adviser Kevin Hassett, one of President Donald Trump's top contenders to lead the Fed, said the independence of the central bank was important, amid concerns he might be too close to the president.

"The Federal Reserve's independence is really, really important," Hassett said in an interview with CNBC. He also said there was plenty of room to lower interest rates in the U.S. economy, something Trump has been pushing since retaking office. The Republican president has consistently attacked current Fed chair Jerome Powell, whose term ends in May, for not lowering interest rates enough.

Trump has identified Hassett, director of the White House National Economic Council, and Kevin Warsh, a former Fed governor, as leading contenders to replace Powell.

In interviews on Tuesday, Hassett brushed off questions about concerns that he may be too close to Trump to chart an independent path at the central bank.

"The idea that being close to the president and serving the president well disqualifies someone for any job just doesn't make any sense to me," Hassett told reporters outside the White House. (Reporting by Susan Heavey and Doina Chiacu; Editing by Chizu Nomiyama)

In general the bond market is volatile, and fixed income securities carry interest rate risk. (As interest rates rise, bond prices usually fall, and vice versa. This effect is usually more pronounced for longer-term securities.) Fixed income securities also carry inflation risk and credit and default risks for both issuers and counterparties. Unlike individual bonds, most bond funds do not have a maturity date, so avoiding losses caused by price volatility by holding them until maturity is not possible.

Lower-quality debt securities generally offer higher yields, but also involve greater risk of default or price changes due to potential changes in the credit quality of the issuer. Any fixed income security sold or redeemed prior to maturity may be subject to loss.

Before investing, consider the funds' investment objectives, risks, charges, and expenses. Contact Fidelity for a prospectus or, if available, a summary prospectus containing this information. Read it carefully.

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