
Federal Reserve's Monetary Stance
Kevin Hassett, the Director of the United States National Economic Council, shared insights on the Federal Reserve's current monetary stance. According to Hassett, the rates are "a little tighter than equilibrium," suggesting a potential shift to "cruise control" in forthcoming meetings. This implies that the Federal Reserve may hold rates steady in the near future.
Confidence in Tax Cuts Extension
Expressing a high level of confidence, Hassett stated he is "99.9% confident" that Congress will pass the extension of the tax cuts introduced during President Donald Trump's first term. He highlighted the positive impact these tax cuts have had on the economy.
Economic Growth Indicators
Hassett also praised recent economic data, including significant expansions in industrial production and a notable jump in housing starts. These indicators, according to Hassett, are clear signs of the US economy's robust growth.
Impact of Department of Government Efficiency
Furthermore, Hassett attributed the recent drop in long-term interest rates to the savings achieved by the Department of Government Efficiency (DOGE), led by Elon Musk. He also pointed out that the threat of US tariffs has led to "visible gain" as companies are moving their auto production back to the US, further stimulating the economy.
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