fomc

Kevin Hassett, one of the top contenders to become the next chair of the U.S. Federal Reserve, has once again emphasized a clear message: the Fed will remain fully independent, even if he ends up leading it. According to him, no president — not even Donald Trump — will be steering the path of interest rates.
Hassett acknowledged that Trump has “strong and often well-supported views,” and that he is always willing to listen.
However, the authority to set the direction of monetary policy lies exclusively with the Federal Open Market Committee (FOMC) — the group of policymakers who vote on the federal funds rate.
His comment responded directly to Trump’s recent statement that he should “have a role” in conversations with whoever becomes the next Fed chair. Hassett made it clear: the president’s opinion cannot outweigh the votes of FOMC members.
He also pointed out that he already speaks with Trump daily in his role as head of the National Economic Council, and monetary policy often comes up in those talks. But these conversations, he stressed, carry no formal weight — and that would remain true even if he became Fed chair.
If Trump’s view were ever to be brought inside the committee, Hassett said it would need to be backed by hard data. “The president’s voice has no weight compared with voting members,” he emphasized.

Inflation, Spending & Data: What’s the Real Picture?
Moderator Margaret Brennan pressed Hassett on the administration’s claim that “prices are falling.” She pointed out the official numbers:
CPI up 3% year over year,Personal Consumption Expenditures index up 2.8% year over year.
Hassett responded that during a Pennsylvania speech, Trump displayed detailed item-level charts. According to Hassett:
prescription drug prices rose 9% under Biden but are down 0.6% this year,gasoline fell sharply from record highs,eggs were another example Trump highlighted, with prices driven by shocks like avian flu.
Hassett said inflation was fueled by a mix of micro shocks (e.g., supply disruptions) and macro drivers, such as large budget deficits and an overly accommodative Fed. Tariff effects, he added, are “mixed.”
He said:
the federal deficit is on track to come in $600 billion lower than last year,the trade deficit is now half of what it used to be.
These trends, he argued, push inflation closer to the Fed’s 2% target.
Brennan then asked: when will voters actually feel the improvement?

Hassett said consumer sentiment usually declines during government shutdowns or political crises.
He noted that the economy is growing around 4%, household incomes are up about $1,200 this year, and that stronger wallets helped fuel “the biggest Black Friday ever.” He said real purchasing power — which he claims fell about $3,000 under Biden — is now up $1,200 this year.
On groceries, Hassett said that monthly household food spending jumped from $400 to $525 under Biden. This year, prices are easing, but still have room to decline. Some tariffs on food items have been reduced, adding: “If we don’t make it here, then we don’t tariff it.”

Video: http://youtube.com/watch?v=gBh89C6nRRQ&t=3s

Oil, Venezuela & Sanctions: Room to Maneuver
Hassett emphasized that current oil prices are low enough for the administration to act more aggressively against Venezuelan crude flows.
He argued that black-market oil shipments keep sanctioned countries afloat, but the U.S. is slowing these fleets. Global oil prices, he said, shouldn’t react much — because those nations “are already on the ropes.”

Labor Market, Hiring Outlook & the Fed
Next came questions about the Fed’s recent statement that job gains are slowing and about CEOs expecting weaker hiring in 2026. Hassett insisted the Fed still sees stronger growth ahead, and that upcoming data releases will be critical.
He said surveys can be unreliable, and that he places more trust in the household survey. The October survey was missing, but the November release will be essential for understanding the labor market’s true condition.

Finalists for Fed Chair: Hassett vs. Warsh — and Trump’s Comments
Brennan noted that Trump listed Kevin Hassett and Kevin Warsh as finalists for the Federal Reserve chairmanship. She also played Trump’s remark that he should “have a role” in speaking with the Fed.
Hassett reiterated that he talks with Trump daily and enjoys those conversations — regardless of whether he becomes Fed chair. And if Warsh gets the job instead, Hassett expects Warsh would maintain the same level of communication with the president.
He ended with two clear points:
No president can override the votes of FOMC members.The Fed makes decisions based on data — not politics.
Hassett summed it up simply: the role of any Fed chair is to bring strong arguments to the committee and let the panel decide.

#TRUMP , #Fed , #TRUMP , #interestrates , #fomc

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Markets just got the greenlight they were waiting for
The Federal Reserve finally pulled the trigger and delivered a 25 bps rate cut. Powell kept his tone careful, but the message underneath is crystal clear: the tightening era is fading and liquidity is slowly coming back.
The real kicker is the Fed confirming forty billion dollars in T bill purchases starting December 12. That is straight up fresh liquidity flowing into the system, and Powell hinted that these elevated purchases will run for months. Translation: the Fed is quietly preparing the market for softer conditions.
Powell also admitted that the labor market is losing momentum. Slower jobs, weaker demand, and rising slack usually push the Fed into easing mode. Combine that with Powell ruling out further rate hikes and you get a policy direction that now leans supportive instead of restrictive.
Inflation is still too high for comfort, but the Fed clearly believes the worst is behind us. With cuts starting and balance sheet support returning, the macro backdrop is turning bullish for risk assets.
Crypto loves liquidity.
Crypto loves lower rates.
Crypto loves easing cycles.
This shift could be the spark that sets up the next wave of momentum.
@Maliyexys
#FOMC #FederalReserve #Powell #RateCut #LiquidityFlow