"With the possible exception of the president, no person has more sway over the fortunes of the United States economy than the chair of the Federal Reserve. Because the Fed controls the U.S. money supply, sets interest rates, regulates banks, and provides liquidity in an emergency, the chair's decisions help determine the pace of inflation, the strength of the labor market, the stability of the financial system, and the cost of a mortgage. If the country faces an economic crisis, the chair's job is to get us out of it."
"Soon, this all-important position might be held by Kevin Hassett, the current director of Donald Trump's National Economic Council. No doubt, Hassett is a Trump loyalist. And there's reason to fear that, as chair, he will do Trump's bidding, undermining the central bank's independence and marking a new stage in the president's control over the American economy."
"As evidence of Hassett's qualifications, the letter cited his "record of serious scholarship on a wide range of topics"; his stellar résumé, which included stints at the Federal Reserve and Treasury Department; and his efforts to "reach out to a wide range of people from across the ideological spectrum.""
The Federal Reserve chair exerts major influence by controlling the money supply, setting interest rates, regulating banks, and providing emergency liquidity. The chair's decisions shape inflation, labor-market strength, financial-system stability, and borrowing costs. Kevin Hassett, currently director of the National Economic Council, is a front-runner to succeed Jerome Powell. Hassett's loyalty to the president prompts concern that he could follow presidential directives and undermine central-bank independence. Earlier bipartisan endorsements noted Hassett's scholarship, prior Fed and Treasury experience, and outreach across ideological lines. Some economists who previously supported him view him as a viable candidate for the chair role.
Read at The Atlantic
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