Hassett to join Trump at Davos, pledges Fed independence if appointed

Investing.com -- National Economic Chief Kevin Hassett announced Friday he will accompany President Trump to Davos next week, where Trump is expected to unveil a new plan allowing 401(k) funds to be used for home down payments.

Speaking on Fox Business, Hassett, who is considered a leading candidate to become the next Federal Reserve chair, emphasized his commitment to central bank autonomy, stating that "independence of Fed is essential for economy stability" and pledging he "would pledge Fed independence" if appointed to the position.

Regarding the Department of Justice investigation into the Federal Reserve, Hassett expressed hope there would be "nothing to see here" and expected "nothing to see on Fed building cost overruns."

Hassett also mentioned ongoing discussions with major banks about credit cards, revealing that "there’ll be great new ’Trump Cards’ from the banks." He indicated that legislation would likely not be needed to implement these credit card initiatives.

On mortgage-backed securities, Hassett explained that "the idea of MBS plan is to get spreads down on mortgages," though he noted that officials are "still working on mechanics of 401(k), home investment" plans.

When asked about potential Federal Reserve chair candidates, Hassett commented that Kevin Warsh and Rick Rieder "would be great Fed chairs."

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