Gulzaib Memon

Here is the condensed version: ### Easing Energy: How an Oil Drop Reopens the Fed's Rate Cut Window White House National Economic Council Director Kevin Hassett recently laid out a highly optimistic outlook for the U.S. economy, linking easing geopolitical tensions directly to future Federal Reserve interest rate cuts (**#HassettOilDropFedRateCutRoom**). Following signals from President Trump that constructive negotiations with Iran are underway to safely reopen the Strait of Hormuz, global Brent crude prices plummeted below $100 a barrel. Hassett argues that current U.S. inflation is fundamentally energy-driven; while April 2026 CPI rose by 3.8%, core CPI (excluding food and energy) remained stable at 2.8%. Previously, persistent energy spikes had forced bond traders to price in a 100% probability of a Fed rate *hike* by December 2026. However, Hassett notes that an influx of global and domestic oil supply will naturally drag down energy input costs. This relief provides the economic "room" for the Fed to comfortably cut interest rates without triggering secondary inflation. Supported by robust consumer demand, Q2 GDP growth projections exceeding 4%, and AI-driven productivity gains, Hassett's message is clear: a Middle East resolution will cool inflation naturally, giving the Fed the green light to pivot. $BTC $ETH $BNB #HassettOilDropFedRateCutRoom #HassettIranDealLinkedToFedRateCuts #EthereumSpotETFs216MWeeklyOutflow #USIranNearHormuzStraitReopenDeal #NEARMarketCapExceedsThreeBillion