As the Fed counts down the days until it announces its last interest rate decision in 2025, in December, interest rate forecasts are being released one after another.
The latest forecast so far comes from White House Director of the National Economic Council Hassett, who has been named as the next Fed chairman.
Kevin Hassett said in an interview with Fox News that the Fed should cut interest rates by 25 basis points in a decision it will announce next week.
Hassett said he expected a 25 basis point rate cut next week and reminded that recent statements by Fed managers also signaled easing.
“I think we should cut rates, and we probably will. It’s more clear that Fed members are now leaning toward lower rates.”
Kevin Hassett cautiously answered a question about how much interest rate cuts he might cut if he became Fed chairman. He stressed that the chair’s role is to be “very sensitive to data” and carefully assess the impact of interest rates on inflation and employment, but declined to provide specific numbers.
Finally, regarding speculation about his candidacy for Fed Chairman, Hassett said, “There are multiple candidates being considered for president…I’m honored to be on the same list as these great people.”
U.S. President Donald Trump, who has frequently praised Hassett in recent days and hinted at his candidacy, announced that he has decided to become Fed chairman and will announce his name in early 2026.
Trump also said at a White House event on Tuesday: “I think there’s a potential candidate for Fed chair here. All I can say is he’s a respected person.”
*This is not investment advice.
