Hassett says there is no case for higher rates after softer inflation data
Kevin Hassett says the Fed has no reason to raise rates after soft inflation See why easing prices could push policy lower and what it means for markets
National Economic Council Director Kevin Hassett said he sees no reason for the Federal Reserve to raise interest rates after the latest U.S. inflation report came in below expectations. Speaking on CNBC’s Squawk Box on Wednesday, Hassett said the data does not support tighter policy and suggested the Fed could move toward lower rates if current trends continue.
Hassett also said White Housebacked Fed Chair Kevin Warsh will guide the central bank toward what he described as the “right answer.” His comments align with President Donald Trump’s repeated calls for the Fed to cut borrowing costs more quickly to support the economy.
The remarks followed the June consumer price index, which fell 0.4% from the previous month and lowered the annual inflation rate to 3.5%, according to the Bureau of Labor Statistics. Hassett called it one of the strongest inflation reports of his career and pointed to broader economic conditions, including falling insurance costs, as evidence of easing price pressures.