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 are easing significantly.
Speaking on CNBC, Hassett described the recent inflation report as "amazing" and argued that the current economic landscape leaves no room for a hawkish pivot.
The comments arrive as markets digest a CPI print that came in well below expectations, reinforcing the view that the Federal Reserve’s tightening cycle is firmly in the rearview.
With inflation cooling faster than anticipated, the pressure on policymakers to maintain restrictive rates has diminished, opening the door for potential easing in the coming months.
Hassett also addressed the role of Federal Reserve Chair Kevin Warsh, asserting that the central bank leader will push for the "right answer" in monetary policy.
This aligns with recent reports that Warsh is preparing to testify before Congress, where he is expected to reiterate the Fed’s commitment to its 2% inflation target while acknowledging the progress made in taming price growth.