Hassett says Fed independence is “actually vital” and candidates for chairman shouldn’t be disqualified as a result of they’re Trump’s good friend

Kevin Hassett, director of the National Economic Council, one of the finalists for the post of Federal Reserve chairman, showed his support for the independence of the central bank on Tuesday.

With President Donald Trump apparently in the final days of choosing a successor to Jerome Powell at the Fed, Hassett declined in a CNBC interview to directly address his own candidacy but said consensus-building was an important part of the job.

“The independence of the Federal Reserve is really, really important and the voices of the other people there [Federal Open Market Committee]“They are important too,” he said. “So interest rate movements need to be driven by consensus based on facts and data.”

Before last week, Hassett was considered the leading candidate to replace Powell, who is nearing the end of his second term as central bank chief. However, Trump said last week that former Gov. Kevin Warsh had also moved to the front of the pack following an interview between the two last Wednesday.

There has been some backlash against Hassett in recent days. Sources told CNBC that the president’s advisers fear Hassett will be perceived as too close to Trump and will do his bidding instead of trying to set interest rates in line with the Fed’s dual mandate of stable prices and full employment.

However, Hassett said his relationship with Trump should not be blamed on him.

“The idea that someone is not qualified for the job because they are a close friend who has worked well with the president is something that I think the president rejects,” he said.

Although he appointed Powell, Trump was a constant critic of the Fed chief.

Trump has called for aggressive rate cuts that have not been met, even though the Federal Open Market Committee (FOMC) has approved three consecutive rate cuts since September totaling three-quarters of a percentage point. Gov. Stephen Miran, a Trump appointee who came aboard in September, has voted against each of those cuts in favor of cuts of half a percentage point.

Hassett stressed the need for consensus building at the Fed. Trump has argued that the Fed should consult the president when making interest rate decisions.

“Rate movements must be driven by consensus based on facts and data,” he said. “When you do something wrong, you explain why and fix it. So that’s the way forward. But the president is an experienced observer of the economy, and if he has a good point of view, I’m sure others will see that too.”

Hassett and Warsh were among five finalists for the job. Treasury Secretary Scott Bessent, who has been leading the process, said on Fox Business Tuesday morning that the decision would likely come in early January.