Potential Fed Chairman Candidate: Trump's victory will reduce US inflation
economist Kevin Hassett stated in an interview that Trump's plans for tax cuts and deregulation are supply-side policies that will bring about "supply-side growth," and "when you increase supply, you put downward pressure on inflation." Hassett refuted the view that the rise in US bond yields and gold prices is due to investor expectations that Trump's presidency will lead to inflation, stating: "In fact, it is higher real interest rates that are driving current trends, as expectations that the Fed policy rate will be able to remain near current levels push up real interest rates, because the economy is very strong."
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