Kevin Hassett, director of the White House National Economic Council, said the Federal Reserve should cut interest rates at its meeting next week and predicted the cut would be 25 basis points, as speculation mounts that President Donald Trump is preparing to nominate someone to lead the Fed.
Hassett was asked in an interview with Fox News whether he believed the Federal Open Market Committee would cut interest rates.
“I think we should cut interest rates, and I think we probably will,” Hassett said, referring to the recent remarks of Federal Reserve governors and regional presidents. “They now seem more inclined to cut rates.”
Hassett said he hopes to bring interest rates down to a lower level in the long run.
“If there is a consensus on 25 basis points, and it seems there is, then I’ll accept it,” he continued.
When asked how many additional rate cuts he might take if nominated and confirmed as the chair of the Federal Reserve, the president’s economic adviser sidestepped the question, saying that the chair’s job is “very data-sensitive” and involves considering what impact adjusting interest rates would have on inflation and employment.
Hassett said, “The president has many candidates to consider. I’m honored to be among these outstanding individuals. Let’s wait and see.”
Trump said earlier this week that he plans to announce his pick for the chair of the Federal Reserve in early 2026 and has already identified the final candidate. In recent days, he has repeatedly praised Hassett and hinted that he might nominate him.
“I think a potential Fed chair is here,” Trump said at a White House event on Tuesday. “I don’t know who has the qualification to say the word ‘potential.’ I can tell you he’s a respected person. Thank you, Kevin.”
Trump’s allies have been discussing whether it would be possible for Scott Bessent to take over the National Economic Council from Hasset if his nomination is approved, while continuing to serve as Treasury Secretary.
