Dec 9 (Reuters) – White House economic adviser Kevin Hassett, also presumed front-runner to be the Federal Reserve’s next chair, said Tuesday that there is “plenty of room” to cut interest rates further, though if inflation rises the calculation may change.
“What we have to do is recognize that like in the ’90s, we’re in a potentially extremely transformative time,” Hassett said at the WSJ CEO Council. Asked what he would do if President Donald Trump wanted him to cut rates and he did not think it was the right thing to do, he said “if inflation has gone from 2.5% to 4%, you can’t cut rates then,” according to a tweet from Wall Street Journal Fed reporter Nick Timiraos.
(Reporting by Ann Saphir; Editing by Chizu Nomiyama )
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