White House Economic Director Hassett Makes Critical Statements About the US Economy – “50 Basis Point Interest Rate Cut…”

While the economic agenda is busy in Washington, remarkable statements came from White House National Economic Council Director Kevin Hassett and US Federal Reserve member Stephen Miran.

Hassett stated that they expect a significant decline in the prices of imported goods. “We anticipate a significant decline in the prices of imported goods,” Hassett said, arguing that this situation should be interpreted as a cost adjustment process, not inflation.

Regarding trade policies, he stated that alternative avenues would be considered if the Supreme Court ruled against the government in the customs duty case. He also stated that 50-year mortgages could make home ownership easier.

Addressing monetary policy, Hassett said a strong dollar policy was a “smart choice.” “Every country needs a strong currency,” he said, adding that he agreed with Trump's view that interest rates could be lower. Hassett said he would accept the position if appointed Fed Chair, adding that the Fed is likely to cut interest rates by 25 basis points. He added that a 50 basis point cut is unlikely.

Meanwhile, Fed member Miran stated, “The Fed's policy is currently too tight,” suggesting a looser monetary policy. Miran also addressed the potential impact of stablecoins on the global economy, saying, “According to independent estimates, stablecoin growth could have an impact equivalent to 30% to 60% of savings rates from 2000-2010.”

*This is not investment advice.