Hassett: US inflation is actually below target, and the Fed has ample room to cut interest rates.

White House economic advisor Hassett said in an interview with Fox Business on Friday that President Trump is correct in saying inflation is low, despite data, public opinion, and most economists disagreeing. Hassett stated that the common practice of assessing inflation based on year-over-year figures is flawed; it's better to look at the three-month moving average of price pressures. This means that price pressures are not significantly above the Federal Reserve's 2% target, but are actually below it. Hassett explained that based on the three-month average price pressures, the current inflation rate is approximately 1.6%. Core inflation in the US is "at or below target," giving the Federal Reserve "ample room" to cut interest rates. (Jinshi)