Fed’s Rate Cut Backed by Trump’s Fed Chair Pick Hassett

- Trump’s Fed chair pick Hassett backs 25bps rate cut. - Miran’s push for 50bps falls short in 11–1 vote. On September 18, 2025, the Federal Reserve lowered interest rates by 25 basis points amid internal debate, a decision endorsed by Kevin Hassett, Trump’s likely nominee to replace Jerome Powell as Federal Reserve Chair. The Federal Open Market Committee (FOMC) voted 11–1 for the rate cut, with the lone dissenter being Stephen Miran, a Trump appointee to the Fed Board, who advocated for a larger 50-basis-point reduction. On September 18, during a CNBC interview, Kevin Hassett, Trump’s likely nominee for Federal Reserve Chair, called the move “a good first step in the right direction to much lower rates.” Emphasizing a cautious, data-driven approach to monetary policy, he added, “The bottom line is that moving kind of slow and steady and heading towards a target, watch the data come in, that’s what prudent policy is.” Although economic indicators showed GDP growth above 3% and inflation slightly exceeding the 2% target, Hassett acknowledged that external factors, such as the struggling housing market and national debt, were key considerations behind the decision. Despite Hassett’s balanced stance, the internal division within the Federal Reserve reflected ongoing debates over the pace and magnitude of rate reductions, as Miran pushed for deeper cuts to counter economic pressures. In contrast, Hassett framed the 25-basis-point adjustment as a measured compromise, stating in the September 18 interview, “They split the baby in this decision, and I think that’s probably a pretty prudent call.” Former President Trump has often criticized Powell and advocated for substantial rate cuts, but at the time of publication, he had not publicly responded to the decision. Meanwhile, Hassett underscored the importance of diverse viewpoints within the Fed, arguing that this diversity is crucial for effectively managing an economy characterized by accelerating growth and decelerating, yet still elevated, inflation. As Hassett positions himself as a prominent candidate to succeed Powell in 2026, the Federal Reserve’s monetary policy will remain under scrutiny. Discussions leading up to key leadership transitions within the central bank will likely focus on future rate adjustments and their broader economic implications. According to CoinMarketCap data on September 18, 2025, as of 12:00 UTC, Bitcoin (BTC) was trading at $26,314, with its 24-hour trading volume increasing by 3.1%. In addition, Ethereum (ETH) was trading at $1,783, while its volume increased by 2.8% over the preceding 24 hours.