Hassett, Frontrunner for Fed Chair, Backs Rate Cut With a Data-Driven Approach

Overview

• White House economic adviser Kevin Hassett told CNBC that policymakers should keep easing and determine the number of cuts based on incoming data.
• He said Jerome Powell has “controlled the situation” well and called a rate cut a prudent step.
• Prediction markets recently put Hassett’s chances of becoming Fed chair at roughly 74%, with a formal nomination reported as likely in the near term.
• The Federal Reserve is set to decide on interest rates this week, and observers remain divided on whether a cut will occur.
• Hassett highlighted potential positive supply shocks and advances in artificial intelligence as reasons the economy can run somewhat faster.