Amidst the busy economic agenda in Washington, notable remarks were made by White House National Economic Council Director Kevin Hassett and US Federal Reserve Board Member Stephen Milan.
Hassett said a significant drop in import prices is expected. “We expect a significant fall in the prices of imported goods,” Hassett said, arguing that the situation should be interpreted as a cost adjustment process rather than inflation.
On trade policy, he said he would consider alternatives if the Supreme Court rules against the government in the tariff case. He also said 50-year mortgages could make home ownership easier.
Regarding monetary policy, Hassett said a strong dollar policy was a “wise move.” “Every country needs a strong currency,” he said, adding that he agreed with President Trump’s view that interest rates could be lowered. Hassett said he would accept the Fed chair if appointed, adding that the Fed would likely cut interest rates by 25 basis points. He added that a 50 basis point (bp) cut was unlikely.
On the other hand, Fed Director Alan Milan stated, “The Fed’s policy is currently too tight,” hinting at an easing of monetary policy. Milan also addressed the potential impact of stablecoins on the global economy, saying, “According to independent estimates, stablecoin growth could have an impact equivalent to 30% to 60% of savings rates from 2000 to 2010.”
*This is not investment advice.
