Kevin Hassett’s Turn Toward Trump Raises Questions About Fed Independence

Kevin Hassett, the White House director of the National Economic Council, has shifted from a longtime conservative economist who championed free trade and immigration to a vocal defender of President Trump’s trade and immigration stances. The evolution has put Mr. Hassett near the top of Mr.

Trump’s shortlist to replace Jerome H. Powell as Federal Reserve chair, a prospect that has prompted investors and policymakers to scrutinize whether he would preserve the Fed’s independence. Mr. Hassett has defended tariffs and argued that recent deportations have improved the labor market, and he has sought to reassure critics by saying Mr.

Trump would have “no weight” on interest rate decisions if he were Fed chair. Mr. Trump has signaled he will choose a chair who supports significantly lower borrowing costs, and on social media last week the president warned, “Anybody that disagrees with me will never be the Fed Chairman!” The president has also met with other contenders, including Kevin M.

Warsh and Christopher J. Waller, and a White House spokesman called discussion of nominations “pointless speculation.” Colleagues and former associates describe Mr. Hassett’s political and intellectual journey in contrasting terms: some say he has become a loyal and adaptable aide who passed tests of allegiance, while others say his public positions no longer resemble the free-trade, low-tax doctrines he once promoted.

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World, United States, Business, Federal Reserve, Kevin Hassett, Trump, Fed Independence