Kevin Hassett, the top pick to replace Fed chair Powell, reveals how he'd handle Trump

"Kevin Hassett, in an interview Sunday on CBS News' "Face the Nation," said he would continue to speak with Trump if he becomes the Fed chair. But when asked if Trump's opinions on interest rates would have "equal weighting" with members of the Fed's interest-rate setting committee, Hassett replied, "No, he would have no weight.""His opinion matters if it's good, if it's based on data," Hassett continued."

"Hassett's comments come as Trump is reportedly in final interviews with potential replacements for the Fed's current chair, Jerome Powell. Trump has emphasized that he expects whomever he nominates to lead the Fed will sharply lower the central bank's key rate, which currently stands at about 3.6%. Trump has said it should be cut to 1% or lower, a view almost no economist shares."

"Until Trump's first election in 2016, presidents of both parties for several decades had avoided commenting publicly on Fed decisions, and usually refrained from doing so privately as well. Economists generally believe that a politically independent Fed is better at combating inflation, because it can take unpopular steps to keep prices down, such as raise interest rates. On Friday, however, Trump said that he "certainly should have a role in talking to whoever the head of the Fed is" about rates."

The leading Fed chair candidate would present presidential views to Fed officials for their consideration, while officials could reject those views when deciding interest rates. The candidate would continue communication with the president if appointed, but presidential opinions would carry no formal weight on the interest-rate committee. Presidential opinions would matter only if supported by data and accepted by committee members; otherwise the committee could vote differently. The president seeks a nominee to sharply lower the Fed's key rate from about 3.6% to near 1%, a target few economists support. The president's outspokenness has raised concerns about the Fed's political independence, reversing decades of presidential restraint. Economists view an independent Fed as better able to combat inflation because it can take unpopular steps like raising rates.

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