Hassett States Core Inflation Rate at 1.6%, Trump Seeks Data-Backed Fed Chair Candidate

Summary

White House National Economic Council Director Hassett stated that the current core inflation rate’s three-month average is 1.6%. Trump is seeking a data-dependent candidate for the Federal Reserve Chair position.USHK News+ 2

Impact Analysis

So they’re basically admitting that they want a Fed chair who will support aggressive rate cuts. Hassett’s emphasis on the 1.6% core inflation rate is a clear attempt to justify this dovish stance, despite it being below the Fed’s 2% target. The timing is crucial—Trump is pushing this narrative just as he’s about to announce his pick for the Fed chair, likely to be someone who aligns with his economic policies, like Hassett or Walsh. This move could undermine the Fed’s independence and lead to more politically driven monetary policy. For markets, this means potential short-term boosts from rate cuts, but increased long-term risks from inflation and credibility issues. Bottom line—expect volatility in interest rate-sensitive sectors and a potential rally in equities if the market buys into the dovish pivot.Sina Finance+ 3