On Sunday, a top economic advisor of President Trump said that the Federal Reserve should be 100 percent independent from political influence when it comes to monetary policy including Trump.
The National Economic Council director Kevin Haset commented during an appearance on CBS’s “Face the Nation”, where he was asked about a survey, which found that only 41 percent of Republicans feel that Fed should be independent of Trump.
“Oh, if I were in that survey, I would say 100 percent that the monetary policy, Federal Reserve Monetary Policy, need to be completely independent of political influence,” Haset told hosts Margaret Brain.
“From President Trump,” Haset said in response to a direct question from Brainon.
“The fact is that we have seen countries that have allowed leaders to handle central banks, and whatever happens is that it is a recipe for inflation and sorrow for consumers,” he said.
“And so Central Bank freedom is something like you saw, there was a hearing about this week, that the Democrats and Republican and the White House agreed about all. Now the question is whether the current central bank is as independent as we want, as we want we want that we would like? And I think there is some controversy about it,” Haset said.
Haset said that he agrees with an up-ed written by Treasury Secretary Scott Besant this week, stating that the Federal Reserve’s freedom was in danger due to “mission creeping”, and required an overhaul.
The Federal Reserve is seen as a potential future president of the reserve, said Haset said that she had no plans to overhaul the fed and focused on her day’s job.
Trump Federal Reserve Chairman Jerome Powell is putting pressure on low interest rates. He has also started an attempt to remove the Federal Reserve Board member Lisa Cook from his position.
Powell’s tenure as the leader of the Fed is in spring. It is possible that Trump can then nominate Haset as a chair.
Haset said that there were many good candidates for the post.
