Ahead of the Federal Reserve’s expected 25 basis point interest rate cut, which is anticipated to be announced in minutes, Kevin Hassett, a figure closely watched by the markets and expected to become the new Fed Chairman, made some very significant and noteworthy statements regarding monetary policy.
Hassett, the White House Director of the National Economic Council, said that futures markets were pricing in a 25 basis point cut, which he called “a small step in the right direction.” However, according to Hassett, the Fed’s work is not finished there. In his statements, he indicated that the central bank may need to take more aggressive steps, calling for a 50 basis point cut before the FOMC meeting.
Hassett argued that strong economic data could support such a cut, stating, “It’s entirely possible for the Fed to cut interest rates by 50 basis points, or even more.” He also said that the decision on who will be the new Fed Chairman will be announced by the President within the next week or two.
On the other hand, market commentators suggest that the Fed’s interest rate cut could be a “hawkish” one. According to JPMorgan’s assessment, this hawkishness could manifest itself in two ways:
- The dot plot indicates that the Fed anticipates only one interest rate cut next year.
- Federal Reserve Chairman Jerome Powell emphasized that inflation concerns persist and made no commitment to further rate cuts in the future.
*This is not investment advice.
Source: https://en.bitcoinsistemi.com/breaking-kevin-hassett-expected-to-become-fed-chair-makes-strong-statements-and-calls-ahead-of-interest-rate-decision/
