Likely Next Fed Chair Speaks After Today’s US Inflation Report: “Interest Rate Cuts…”

White House economic adviser Kevin Hassett said he welcomed today’s consumer price index (CPI) data, which came in below expectations.

Hassett argued that the US economy was showing lower inflation along with high growth.

Speaking in an interview with Fox Business Network, Hassett said, “I’m not saying we’re declaring victory on prices, but this is a surprisingly good CPI report.” Hassett stated that wage increases have outpaced price increases, that American taxpayers will see higher tax refunds next year, and that the government will help lower mortgage interest rates.

Hassett, stating that the slowdown in inflation has created room for monetary policy, said, “The Fed has a lot of room to cut interest rates.” Hassett, considered one of the favorites to replace current Fed Chairman Jerome Powell, also argued that the US central bank needs to be more transparent in the future. “The Fed needs to be 100 percent more transparent than it has been to date. Whoever is at the Fed, they need to put all their cards on the table so we can really understand what’s going on in this institution,” he said.

On the other hand, President Donald Trump, in his address to the nation on Wednesday night, pledged that economic conditions would improve next year, basing this on tax policies, tariffs, and plans to appoint a new Fed chairman to replace Powell. It is reported that Trump is expected to announce Powell’s successor early next year.