🔥Hassett's latest statement: Using a new algorithm to prove inflation is only 1.6%, there is ample room for interest rate cuts
💥White House economic advisor and leading candidate for the next Federal Reserve chair Kevin Hassett has once again provided "data ammunition" for the prospect of interest rate cuts. He recently stated that if the three-month moving average is used, the current inflation rate in the United States is only about 1.6%, which is below the Federal Reserve's 2% target.
Hassett's move aims to challenge the traditional year-on-year assessment method, providing new arguments for the view that core inflation is "at or below target" and directly concluding: this "provides ample room" for the Federal Reserve to cut interest rates. As a core economic advisor to Trump, his remarks continue to pave the way for the White House's desired easing policies, attempting to influence market and Federal Reserve expectations.
For the market, a clear call for interest rate cuts from political high levels further strengthens the narrative of a shift towards a loose liquidity environment, providing support for risk asset sentiment.
