Hassett: The Fed still has room to cut rates, and this outlook remains very solid.

White House National Economic Council Director Hassett stated that the Federal Reserve still has room to cut interest rates, and this outlook remains very solid. He also mentioned that a backup plan for the opening of the Strait of Hormuz has been developed. Furthermore, after data showed rising gasoline prices due to the Iran war and accelerating US inflation in March, bond traders slightly reduced their bets on one Fed rate cut this year. Friday's interest rate swap market pricing indicated that the probability of a 25 basis point rate cut by the Fed this year is about one-third, little changed from before the data release. Following the report's release, US Treasury bonds fell slightly, with yields across all maturities rising by two to three basis points. Tom di Galoma, Managing Director of Mischler Financial Group, said, "Today's CPI data won't support bond prices because next month's inflation report will bring more trouble to investors and the Fed." (Jinshi)