WH Economic Advisor Hassett: Fed Should Return To Appropriate Rate Path #MacroEdge
VARNEY: What do you think of the suggestion that the president create a shadow Fed board with you at its head? HASSETT: What needs to happen is the Federal Reserve needs to get back on the curve looking at where rates ought to be https://t.co/vTAvz07tqv
NEC Hassett: The US inflation data has been fine. The Fed needs to get back on the curve https://t.co/okfgbdiByU
White House senior economic adviser Kevin Hassett amplified pressure on the Federal Reserve to ease monetary policy, saying President Donald Trump has “strong views” that the central bank could lower interest rates and agreeing with Fed Governor Christopher Waller’s assessment that current borrowing costs are too high. In broadcast interviews on 16 July, Hassett said the latest inflation readings have been “fine” and described the Fed as “very, very slow” to adjust, urging it to “get back on the curve” and return rates to what he called an appropriate path. The comments follow earlier statements on 23 and 30 June in which Hassett publicly aligned himself with Trump and Waller on the need for looser policy. Hassett, a former Council of Economic Advisers chairman, declined to say whether he would accept the Federal Reserve chairmanship, though prediction markets have listed him among the leading contenders should the White House decide to replace Jerome Powell later this year.