White House economic adviser Kevin Hassett said he welcomed today’s consumer price index (CPI) data, which was lower than expected.
Hassett argued that the U.S. economy is showing high growth and low inflation.
“I’m not declaring victory on prices, but this is a surprisingly good CPI report,” Hassett said in an interview on Fox Business Network. Hassett said wage growth is outpacing inflation, American taxpayers will receive larger tax refunds next year and the government will help lower mortgage rates.
Hassett said the slowing inflation has created more room for monetary policy: “The Fed has plenty of room to cut rates.” Hassett, who is considered one of the possible successors to current Federal Reserve Chairman Jerome Powell, also argued that the U.S. central bank needs to be more transparent in the future. “The Fed needs to be 100% more transparent than it has been in the past. Whoever is at the Fed, they need to put all their cards on the table so we can truly understand what’s going on in this institution,” he said.
Meanwhile, President Donald Trump promised in an address to the nation Wednesday night that economic conditions would improve next year, based on tax policy, tariffs and plans to appoint a new Federal Reserve chairman to replace Mr. Powell. Trump is reportedly expected to announce Powell’s successor early next year.
*This is not investment advice.
