White House Economic Director Hassett Makes Critical Statements About the US Economy – “50 Basis Point Interest Rate Cut…”
White House National Economic Council Director Kevin Hassett expects a significant decline in imported goods prices, interpreting it as a cost adjustment, not inflation. He discussed alternative trade policy avenues depending on a Supreme Court customs duty case ruling and highlighted the possibility of 50-year mortgages aiding home ownership. Hassett also advocated for a strong dollar policy and agreed with the idea of lower interest rates, noting he would accept a Fed Chair position and expected a 25 basis point rate cut, while ruling out a 50 basis point cut. Separately, Fed member Stephen Miran suggested the current monetary policy is too tight, advocating for a looser stance. He highlighted stablecoins’ potential global economic impact, estimating growth between 30% to 60% of 2000-2010 savings rates.
Economic Expectations for Imported Goods
White House National Economic Council Director Kevin Hassett announced 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, emphasizing that this situation should be seen as a cost adjustment process rather than inflation.
Trade Policy and Supreme Court Case
Hassett noted that regarding trade policies, alternative avenues would be considered if the Supreme Court ruled against the government in the customs duty case. He also mentioned a new measure, highlighting that 50-year mortgages could potentially make home ownership more accessible.
Monetary Policy and Currency Strength
Addressing monetary policy, Hassett explained the importance of a strong dollar policy, calling it a “smart choice.” He stated, “Every country needs a strong currency,” and agreed with President Trump’s perspective that interest rates could be lower. Furthermore, Hassett expressed willingness to accept the position of Fed Chair if offered. He predicted that the Fed is likely to cut interest rates by 25 basis points, but a 50 basis point cut is unlikely.
Fed Member Miran on Monetary Policy
US Federal Reserve member Stephen Miran suggested that current Fed policies are too tight, advocating for a looser monetary policy. Miran stated, “The Fed's policy is currently too tight,” signaling potential changes in the approach to stimulate economic growth.
Impact of Stablecoins on the Global Economy
Miran also discussed the potential economic implications of stablecoins, explaining their influence on global savings rates. He stated, “According to independent estimates, stablecoin growth could have an impact equivalent to 30% to 60% of savings rates from 2000-2010.” He concluded the remarks with a disclaimer: This is not investment advice.