White House National Economic Council Director Kevin Hassett said he believes there is still plenty of room for the Federal Reserve to cut interest rates. Sources said that Hassett is most favored by Trump's advisors and allies among the Federal Reserve presidential candidates. At the CEO Council summit hosted by the Wall Street Journal on Tuesday, Hassett was asked if he became chairman, he would push for the drastic interest rate cuts the president wanted. He said, “If economic data shows we can do this, like now, I think there is room for a drastic reduction in interest rates.” When asked if that meant more than 25 basis points, he answered, “Yes.” Hassett is closely aligned with Trump's position, and outsiders therefore question whether he will stick to the central bank's decades-long tradition of political independence in interest rate decisions if he takes charge of the Federal Reserve. Trump himself said in an interview with Politico on Tuesday that whether to cut interest rates quickly will be a “litmus test” for him to choose the chairman of the Federal Reserve.

White House National Economic Council Director Kevin Hassett said he believes there is still plenty of room for the Federal Reserve to cut interest rates. Sources said that Hassett is most favored by Trump's advisors and allies among the Federal Reserve presidential candidates. At the CEO Council summit hosted by the Wall Street Journal on Tuesday, Hassett was asked if he became chairman, he would push for the drastic interest rate cuts the president wanted. He said, “If economic data shows we can do this, like now, I think there is room for a drastic reduction in interest rates.” When asked if that meant more than 25 basis points, he answered, “Yes.” Hassett is closely aligned with Trump's position, and outsiders therefore question whether he will stick to the central bank's decades-long tradition of political independence in interest rate decisions if he takes charge of the Federal Reserve. Trump himself said in an interview with Politico on Tuesday that whether to cut interest rates quickly will be a “litmus test” for him to choose the chairman of the Federal Reserve.