Democratic Senator Elizabeth Warren has criticised President Donald Trump’s leading candidates to head the Federal Reserve, labelling them as ‘sock puppets’ who would compromise the central bank’s independence. Speaking to CNBC, Warren, the top Democrat on the Senate Banking Committee, singled out Kevin Hassett as a primary concern. The Senate Banking Committee is responsible for carefully examining nominees to the Fed’s board.
Hassett, currently the front-runner for the position, serves as director of the White House National Economic Council, directly reporting to Trump. Other contenders include former Fed Governor Kevin Warsh and current Fed Governor Christopher Waller. The Federal Reserve is the central banking system of the United States. It aims to provide the nation with a safer, more flexible, and more stable monetary and financial system.
Warren expressed particular worry about Hassett, stating, ‘Kevin Hassett is the biggest concern on that list because he has made clear that he will do whatever the president wants done. He will say whatever the president wants said, and that is the very definition of a sock puppet.’ She questioned when Hassett had last publicly disagreed with Trump in any way.
Trump is searching for a successor to current Fed Chair Jerome Powell, whose term concludes in mid-May. Trump has repeatedly criticised Powell for not implementing substantial interest rate cuts. Hassett, in an interview with the Wall Street Journal, claimed he would not succumb to political pressure from Trump and would rely on his own judgment. Warren has also been critical of Trump’s treasury secretary, Scott Bessent, who reportedly declined the top Fed job.
