Trump's economic advisor Hassett stated that a significant interest rate cut by the Federal Reserve is a reasonable move, but implied that its independence is compromised
ChainCatcher news, Trump's economic advisor Kevin Hassett stated in an interview that it is a reasonable move for the Federal Reserve to cut the main interest rate by 50 basis points instead of 25 basis points, as data shows that the job market is weakening. He believes that a significant rate cut is justified based on the data at the time, as economic growth has slowed considerably.Hassett agrees with Trump's view that the Federal Reserve has taken "political actions" in recent years. He stated, "I think it is reasonable to believe that the Federal Reserve has not been as independent as it should be." He mentioned the Federal Reserve's decision to raise rates in December 2016 before Trump's inauguration, despite the fact that "the data did not support a rate hike." He added that later, during "the Democratic administration's fiscal policy going out of control, the Federal Reserve did not take action."However, Hassett denied concerns that Trump would attempt to undermine the independence of the Federal Reserve in a second term. He stated, "I believe President Trump supports an independent Federal Reserve, but he also wants his voice to be heard, and he hopes there are truly independent people there."
