Federal Reserve Chair nominee Hassett: Respect independence but question the Federal Reserve's overspending, the economy has not prospered due to the Federal Reserve
Federal Reserve Chairman candidate Hassett stated in an interview with CNBC that, while respecting the independence of the Federal Reserve, he questions its monetary policy, believing that the U.S. economy is not thriving, with primary responsibility lying with the Federal Reserve's restrictive policies. He also mentioned that the costs of the Federal Reserve headquarters renovation project have significantly exceeded budget and analyzed the layoffs in the job market. Hassett still intends to serve as Chairman of the Federal Reserve
Hassett stated that Trump's views on interest rates are "unrelated" to the Justice Department's investigation of the Federal Reserve, while he attributed the sluggish growth of the U.S. economy to the Federal Reserve.
On January 12, in an interview with CNBC, Hassett first clarified the boundaries between politics and justice. He stated, "I respect the independence of the Federal Reserve and the independence of the Justice Department," and emphasized that President Trump’s views on interest rates are "unrelated" to the Justice Department's investigation of the Federal Reserve. He added that he was not aware of the details of the Justice Department's investigation plans. This statement aimed to address market concerns about political interference in monetary policy and judicial independence. Previously, Federal Reserve Chairman Powell had made a strong statement after receiving a subpoena from the Justice Department, asserting that he would stand firm.
Subsequently, Hassett pointed the finger at the Federal Reserve's monetary policy. He bluntly stated that the U.S. economy is currently not showing signs of "prosperity," and this is mainly attributed to the Federal Reserve and its ongoing restrictive policies. While affirming the independence of the central bank, his critical stance was very clear.
Regarding the recent controversy surrounding the renovation project of the Federal Reserve headquarters, Hassett confirmed that the project's "costs have significantly exceeded budget" and pointed out that the renovation plans seem to be "inconsistent" with Chairman Powell's previous testimony at a congressional hearing.
On the issue of the job market, Hassett refused to judge whether the 4.4% unemployment rate indicates "full employment." He attributed the recent high number of layoffs to federal government downsizing and the deportation of illegal immigrants. He insisted that the government's economic policies "are indeed working" and predicted that measures aimed at strengthening domestic manufacturing will bring more hiring in the second half of this year.
Notably, as one of the popular candidates to succeed as Federal Reserve Chairman, Hassett expressed his intention to still take on a position at the Federal Reserve.
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