Kevin Hassett "Shutdown fallout distorts indicators… My judgment that a rate cut was needed was correct"

Kevin Hassett, chairman of the White House National Economic Council (NEC) and a leading candidate for the next U.S. Federal Reserve (Fed) chair, expressed his views on the recent rate debate and the flow of economic indicators. He emphasized that, despite the end of the shutdown, economic data are temporarily distorted and that his prior judgment raising the need for a rate cut was justified.

According to the overseas economic breaking news channel Walter Bloomberg on the 9th (local time), Hassett said, "The shutdown is over, but its effects are reflected in several economic indicators and the data are shaking," adding, "The rapid deterioration in sentiment indicators is also a normal response often seen during a shutdown phase."

On the direction of rate policy, Hassett said, "My judgment that raised doubts about the claim that rates do not need to be cut was correct," and, "(Going forward) rate decisions will be made according to my economic judgment, and President Trump also trusts this." At present Jerome Powell leads the Fed, but as discussion of the next chair intensifies, Hassett's remarks were essentially read as revealing his policy philosophy.

Regarding the U.S. economic situation, he said, "The basic gross domestic product (GDP) growth rate easily exceeds 3%, and growth in the 4% range is also possible."