Fox News Interview
Kevin Hassett, Chairman of the White House National Economic Council (NEC), stated on December 21 (local time) that inflation is below target levels and criticized the U.S. Federal Reserve (Fed) for not lowering the benchmark interest rate sooner.
In an interview with Fox News that day, Chairman Hassett said, "President (Donald Trump)'s assessment that the Fed's response is slow is correct," making these remarks.
He emphasized, "Recent economic indicators show that inflation is well below the target level," and added, "Currently, we are in a phase of supply shock, which means we can achieve high growth without inflation."
He also referenced comments by Austan Goolsbee, President of the Federal Reserve Bank of Chicago, saying that even Goolsbee admitted it was a mistake to oppose the last rate cut based on the latest inflation data. Hassett added that President Goolsbee is likely to support further rate cuts in the future.
Chairman Hassett stated that President Trump "wants someone who will run the Fed the way it was meant to be run," and that "the person must be able to make independent and sound decisions based on data."
He is being mentioned as a candidate for the next Fed Chair. President Trump plans to nominate a successor to current Fed Chair Jerome Powell, whose term expires in May next year, within the next few weeks.
Chairman Hassett refuted some media reports claiming that the cost increases from the Trump administration's tariff policies were passed on to consumers, saying, "I cannot agree with that." He argued that the three-month average core inflation, excluding food and energy, has dropped significantly to 1.6%, much lower than at the beginning of this year when the Trump administration's second term began.
Chairman Hassett emphasized the effects of the tariff policy, stating, "We have recorded a trade surplus in recent months, and over the past year, the trade deficit has decreased by 600 to 700 billion dollars compared to the previous year." He added, "We are seeing a 4% growth rate and inflation in the 1% range."
Additionally, he announced that the Trump administration will unveil measures early next year to ease the financial burden on homebuyers.
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