Kevin Hassett, former Chair of the White House Council of Economic Advisers and one of Donald Trump’s top contenders to succeed Jerome Powell as Fed Chair, has voiced support for the Federal Reserve’s decision to cut interest rates by 25 basis points.

Hassett: “A sensible first step”

In an interview with CNBC, Hassett called the quarter-point cut a smart and measured decision. He emphasized that the Fed is moving slowly and cautiously, allowing space to monitor incoming economic data.

“I think this is a good first step in the right direction toward lower rates,” Hassett said, even as part of Trump’s team, led by Stephen Miran, had pushed for a deeper 50 basis point cut.

FOMC: 11 to 1 vote

At the FOMC meeting, 11 members voted in favor of the 25bps cut, while the lone dissenting vote came from Miran – Trump’s recent Fed nominee, who argued for a bolder move.

Trump remains silent

Donald Trump, who has long criticized Powell and consistently demanded steeper and faster cuts, has not yet commented on the Fed’s latest decision. In the past, he claimed that rates should be 300 basis points lower than the Fed’s own projections.

Economy slows, debt mounts

Hassett also noted that the U.S. economy faces a complex environment. GDP growth has topped 3%, inflation is slowing but still above the Fed’s 2% target, the housing market is showing signs of stress, and $37 trillion in federal debt adds further pressure.

“They split the baby”

Summing up the decision, Hassett said: “They split the baby here – and I think that’s probably a very reasonable decision.” He added that a diversity of views inside the Fed is healthy, as it allows the committee to weigh various economic scenarios.

What comes next will largely depend on upcoming data on inflation and labor markets. And while Hassett is still speaking from the outside, his tone suggests he is already positioning himself for the role he could assume in 2026 – sitting at the helm of the Federal Reserve.


#FederalReserve , #TRUMP , #Fed , #Powell , #wallstreet

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