White House economic adviser says the Fed has room for significant rate cuts, not just 25 basis points

[Blockchain News] The Director of the White House National Economic Council, Hassett, recently made a statement saying that the Fed is fully in a position to carry out a substantial rate cut.

A reporter asked him directly: If you are appointed, would you implement the kind of aggressive rate cuts that Trump wants? Hassett’s answer was pretty straightforward—“Let’s look at the data; given the current situation, I think it’s entirely possible.” When pressed on whether the rate cut would exceed 25 basis points, he replied with a single word: “Yes.”

Trump’s stance was also made clear. In an interview, he stated plainly that the speed of rate cuts would be an important criterion for his choice of the Fed chair. That’s as direct as it gets.

The most interesting part was when a reporter asked Hassett: If you become chair, whose direction would you follow—Trump’s or your own economic judgment? Hassett’s response was nuanced—“I’d go with my own judgment, and I believe the President trusts my judgment.”

This statement is no small matter for the markets. Once expectations for a rate cut heat up, it signals easier liquidity, and risk assets, including the crypto market, are often the first to pick up on it.