Hassett Says Fed Should Cut Interest Rates More Aggressively

White House National Economic Council Director Kevin Hassett is pushing for bigger interest rate cuts from the Federal Reserve. He says the 25-basis point reduction the Fed delivered last week doesn't go far enough given current economic conditions.

Hassett is President Trump’s chief economic advisor and is widely viewed as a leading contender to replace Federal Reserve Chair Jerome Powell when his term ends in mid-May 2026.

Trump and Powell have clashed repeatedly over the Fed’s interest rate decisions. The President believes Powell has kept rates too high for too long, damaging economic growth. Trump has said rates should be no higher than 1.75%.

Speaking at The Wall Street Journal CEO Council Summit last week, Hassett answered questions about whether he would push for lower rates. "If the data suggests that we could do it, then like right now I think there's plenty of room to do it," Hassett said.

The Federal Reserve is designed to operate independently from political pressure. But Hassett's close relationship with Trump and their aligned views on monetary policy have sparked concerns that this independence could be threatened should Hassett assume the role of the next Chair.

Trump has said he will announce his pick in early 2026 and has made clear he wants faster rate cuts ahead of the next election.