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Kevin Hassett, chairman of the White House National Economic Council (NEC) and a leading candidate for the next chairman of the U.S. central bank, the Federal Reserve (Fed), said on the 14th (local time) that the President's voice on the Fed's monetary policy is "just his opinion."
Hassett said on CBS, when asked if "the President's voice carries the same weight as the Federal Open Market Committee (FOMC) members who have voting rights on monetary policy," "No. It carries no weight at all."
Earlier, President Donald Trump argued on the 12th that he should have influence over the Fed's benchmark interest rate decisions, stating, "My voice should be heard."
President Trump has included Hassett and former Fed Governor Kevin Warsh among the potential successors to current Chairman Jerome Powell (to take office next May). He is scheduled to nominate the next chairman early next year and has already hinted that he has someone specific in mind, saying, "I pretty much know who I want."
Hassett explained, "If it's a good, data-driven opinion, then (the President's opinion) is important. Then I would go to the committee and say, 'The President made this argument, and I think the argument is valid.' And if they don't accept it, I would vote differently."
Hassett described President Trump as "having very strong and well-reasoned views on what we should be doing" and said that as his policy advisor, he "talks to him about everything almost every day, and we have certainly talked about monetary policy."
However, he emphasized, "Ultimately, the job of the Fed (chairman) is to exist independently and to forge a consensus with the group of governors that make up the FOMC about where rates should be. Ultimately, the place that votes is the committee (FOMC)."
He added, "I would be happy to talk to the president every day until I die, whether or not I become the Fed chairman," because "it is so much fun to talk to the president."
Next Fed Chair candidate Kevin Hassett, Chairman of the White House National Economic Council (NEC). AFP Yonhap News
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