White House National Economic Council Director Kevin Hassett stated in an interview that Thursday's inflation data has made Fed Chair Powell's work "somewhat easier."
When asked if he still has confidence in Powell, Hassett responded, "Of course." He noted that Powell will make the appropriate decisions based on the data.
Hassett added, "I am very, very optimistic about the direction of Fed policy going forward, which is to remain nonpartisan and independent."
On the same day, White House Trade Advisor Peter Navarro said that if current market trends persist, the Federal Reserve should consider lowering interest rates.
According to a previous report, the U.S. June PCE price index declined by 0.1% month-over-month, the first negative monthly reading since 2020, while the year-on-year increase narrowed to 3.7% from 4.1% in the prior month. Core PCE, excluding energy, eased slightly to 3.3% year-on-year from 3.4%, with a month-over-month increase of just 0.1%, below the market expectation of 0.2%.
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