The White House economic advisor Hassett is speaking and says:
- Plenty of room for the Fed to cut rates
- Says that there is a play room to cut more than 25 basis points.
- Pres. Trump will make a choice but could change his mind
- Says that it’s important for the Fed chair to look at data.
- Says that Treasury Secretary Bessette is at the top was for running the Fed, but he does not want the job.
- If Fed chair, would make decisions based on his judgment. Says Trump trusts that.
- Labor growth is a little slower than it has been
What is interesting, is the focus on the data. The criticism from the likes of Miran (or Bessent) is that the current Fed is not forward-looking enough. That they need to anticipate more.
Hassett is more in line with the current Fed think – inclusive of Fed Powel who consistently says the Fed is data -dependent.
The betting markets are putting their money on Hassett with Pollymarket having Hassett at 76%, but that is down from about 88% yesterday. Kevin Warsh is now at 12%
WH Economic Advisor Hassett: There is more room than a 25 basis point cut
