In an interview on Fox Business on Friday, National Economic Council Director Kevin Hassett, who is allegedly being evaluated by President Trump as a possible candidate for Federal Reserve Chair, stated his support for conservative interest rate decreases.
Hassett cited Scott Bessent’s proposal to establish a three-year residence requirement for Federal Reserve Bank presidents in support of Bessent’s viewpoint. He said that he has not spoken with President Trump about this matter.
Regarding the economy, Hassett projected “a bigger comeback in the first quarter” of 2026 but said the current government shutdown had a greater economic effect than expected. He said he “would be unhappy with 3% growth” during the first and second quarters, indicating that he had high hopes for growth.
Hassett projected “a 4% productivity number for 2026” and said that the “AI economy is advancing faster than 1990s dot-com industry.” Additionally, he mentioned “huge momentum into next year as factories open.”
Hassett cautioned about “huge disruption if Supreme Court nixes tariffs” in relation to trade policy and said that Sections 232 and 301 trade sanctions are possible backup alternatives.
