Kevin Hassett, one of President Trump’s top economic aides and director of the National Economic Council, recently stated that the Federal Reserve may cut interest rates at its next meeting, with an expected cut of 25 basis points.
Current Federal Reserve Chairman Jerome Powell's term will end in May 2026, and Hassett has emerged as the frontrunner for the position in recent weeks. Therefore, Hassett's views are attracting considerable attention.
In a recent interview, when asked if he thought the Federal Open Market Committee (FOMC) would cut interest rates at its December meeting, Hassett said, "I think we should do that, I think we are very likely to do that."
He added, "They now seem more inclined to cut rates." He was referring to recent statements by Federal Reserve governors and regional presidents.
According to the CME FedWatch Tool, the market widely expects the Federal Reserve to cut interest rates at its meeting next week, with a probability of 87%.
Hassett also stated that he hopes to "lower interest rates in the long term".
“If everyone agrees on 25 basis points, and that seems to be the case now, then I will accept it,” he continued.
When asked how many more interest rates he might cut if nominated and confirmed as Federal Reserve Chairman, Hassett dodged the question, saying that the job of Fed Chairman is “very data-sensitive” and requires consideration of the impact of interest rate adjustments on inflation and employment.
“The president has been considering several candidates. I am honored to be on the list alongside some great people. We will see,” he added.
Trump said over the weekend that he had decided on his nominee for the next Federal Reserve chairman, and on Tuesday reiterated that he would announce the nominee "early next year," while strongly suggesting that Hassett might be his choice.
“I guess a potential Fed chairman is here too,” Trump said at a White House event Tuesday. “I don’t know who’s qualified to use the word ‘potential.’ I can tell you he’s a respected man. Thank you, Kevin.”
In addition, Trump's allies have been discussing whether Treasury Secretary Scott Bessant could also serve as director of the National Economic Council if Hassett's nomination is approved.
(Article source: CLS)
