Trump economic adviser Kevin Hassett: The Fed's sharp rate cut is reasonable

Kevin Hassett, an economic adviser to the Trump administration and a potential candidate for the Federal Reserve chairman, said in an interview that the Fed's move to cut its main interest rate by 50 basis points instead of 25 basis points was justified because data showed that the job market was weakening. He said, "Based on the data they had at the time, it made sense to start cutting interest rates sharply. At that time, it did look like economic growth was slowing sharply." Kevin Hassett's remarks conflicted with Trump's condemnation of the Fed's actions in a speech to the Detroit Economic Club earlier this month. He is currently a fellow at Stanford University's Hoover Institution and has served as chairman of the Trump administration's Council of Economic Advisers since 2017. He has remained in Trump's circle and is expected to enter the leadership, including possibly running the Federal Reserve, if the Republican candidate defeats Harris next month. Trump is expected to choose a new Fed chairman after the current Fed Chairman Powell's term ends in 2026. (Jin Shi)