White House Economic Adviser Suggests Iran Deal Could Pave Way for Fed Rate Cuts

Deep News07:45

The White House's chief economic adviser under President Donald Trump, Kevin Hassett, stated that he believes a future decline in oil prices could create room for the Federal Reserve to lower interest rates. Hassett mentioned in a program that the White House expects energy prices to fall once an agreement with Iran is reached. Concurrently, Trump posted on social media, describing negotiations with Tehran as "proceeding in an orderly and constructive manner." "We anticipate that once a deal is reached, energy prices will drop significantly. At that point, the Fed will have considerable leeway to cut rates," Hassett said. He emphasized respect for the Fed's independence and praised Kevin Warsh, who was sworn in as the Fed chair last Friday. Trump expressed hope that Warsh would be "completely independent" and "do your own thing." The closure of the Strait of Hormuz by Iran has led to a surge in U.S. fuel prices, posing increasing political risks for Trump and the Republican Party ahead of the November midterm elections. Hassett attributed the acceleration in inflation primarily to energy prices.

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