17.02.2025 12:21
Kevin Hassett from President Donald Trump's team stated that they hold regular meetings with Jerome Powell. These discussions provide important insights into the impact of interest rates amid the fight against high inflation and economic uncertainties.
President Trump's economic advisor Kevin Hassett announced that they hold regular meetings with Federal Reserve Chairman Jerome Powell. These meetings play an important role in combating ongoing high inflation and economic uncertainty. Hassett shared in detail how these discussions impact the Fed's independence.
INTEREST RATE DISCUSSIONS CONTINUE BETWEEN THE WHITE HOUSE AND THE FED
Amid economic uncertainties and high inflation, investors are trying to maintain their hopes for interest rate cuts. Recent developments on the U.S. front raise questions about the fulfillment of these expectations. National Economic Council Chairman and Trump's White House advisor Kevin Hassett stated that they have regular meetings with Federal Reserve Chairman Jerome Powell. In a statement regarding the matter, Hassett emphasized Powell's independence, stating, "The Fed's autonomy is respected, but the views of the U.S. President cannot be ignored." Hassett also noted that the 40 basis point drop in 10-year Treasury yields during the Trump administration reflects a decline in inflation expectations in the market.
The low-interest-rate environment facilitates borrowing for corporate acquisitions while also increasing interest in risky investment vehicles like cryptocurrencies. However, Fed Chairman Powell's remarks during the Senate Banking Committee meeting on February 11 raised questions about the anticipated interest rate cuts for 2025. Following Powell's cautious statements, the January 2024 Consumer Price Index data also came in above expectations. The index showed a 3% year-on-year increase, exceeding predictions by 0.1%. As a result of this development, Bitcoin's value fell below $95,000.
Ongoing inflation concerns, potential trade wars, and other economic risks are leading investors to act cautiously. According to the Chicago Mercantile Exchange's FedWatch data, only 3% of market participants expect the Fed to implement a 25 basis point interest rate cut in March.