Fed Chair Debate Heats Up
Kevin Hassett, one of the leading candidates for Fed Chair, believes the US central bank has experienced "mission drift," jeopardizing its independence and credibility. In an interview on "Face the Nation," Hassett emphasized that the Fed should be completely free from political pressure and more transparent, though he did not outline a detailed reform plan if elected. This statement aligns with reports from Bloomberg and Reuters on Sunday.
Hassett's tone echoes an essay by US Treasury Secretary Scott Bessent in the Wall Street Journal urging a "thorough independent review" of the Fed and calling for the central bank to refocus on its statutory mandate, rather than taking over other functions such as banking oversight. Bessent's ideas—which have drawn criticism for their potential to increase White House influence—have been widely discussed since Friday.
On the market side, Citadel founder Ken Griffin, in an opinion piece for the WSJ, reminded President Donald Trump that maintaining the Fed's independence is in his "best interest." The article—co-authored with Chicago Booth economist Anil Kashyap—also argues that a qualified candidate would help ease market concerns. Names like Christopher Waller, Michelle Bowman, and Hassett himself have been mentioned as leading candidates to replace Jerome Powell.
Hassett also highlighted the need to modernize Bureau of Labor Statistics (BLS) data to restore public trust—an issue that has become increasingly sensitive after Trump fired the BLS leadership last month and the release of the latest employment data showed a slowdown. This focus on data quality has added pressure on the Fed amid an increasingly heated political debate. (ayu)
Source: Newsmaker.id
