National Economic Council Director Kevin Hassett stated there is no justification for raising interest rates, pointing to the latest consumer price index data as evidence that inflation pressures have eased significantly.
Speaking on CNBC, Hassett described the recent inflation report as "amazing" and credited President Donald Trump’s policies for the improved economic backdrop.
Federal Reserve Chair Kevin Warsh is expected to testify before Congress in the coming days, where he is likely to reiterate the central bank’s commitment to its 2% inflation target.
Hassett’s remarks align with the current market consensus that the Federal Reserve is unlikely to tighten policy further.
With inflation cooling faster than anticipated, traders are increasingly pricing in a pause or potential easing cycle rather than additional hikes.
The comments serve as a political endorsement of the central bank’s likely trajectory, reducing uncertainty around the policy path.
Federal Reserve Chair Kevin Warsh is expected to testify before Congress in the coming days, where he is likely to reiterate the central bank’s commitment to its 2% inflation target.