The NEC Director is currently among the frontrunners to succeed Fed Chair Jerome Powell, whose term expires in May next year.
National Economic Council Director Kevin Hassett reportedly said on Friday that now is a “good time” for the Federal Reserve to cut rates cautiously, days ahead of the Federal Open Market Committee (FOMC) meeting.
During an interview with Fox Business, Hassett stated that he expects the Fed to cut rates next week. “It’s a good time for the Fed to cautiously reduce rates again,” he said.
The NEC Director is currently among the frontrunners to succeed Fed Chair Jerome Powell, whose term expires in May next year.
Hassett’s comments come amid growing expectations of a 25 basis point rate cut next week. According to data from the CME FedWatch tool, there is a 87.2% probability of a quarter-point cut.
Morgan Stanley on Friday joined JPMorgan and Bank of America in expecting a rate cut next week, reversing its previous stance that the Fed would pause following the cuts in September and October.
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