Back to today’s briefing

Story perspectives

Kevin Hassett: Potential for U.S. Interest Rate Cuts

12/17/2025

50 11 Full Breakdown

Summary

Story summary

Kevin Hassett, director of the National Economic Council (NEC), says there is potential to cut U.S. interest rates that are misaligned with global rates.
He stresses consensus within the Federal Reserve and deficit reduction to support lower rates.
Hassett notes unemployment has risen to 4.6 percent.
He projects 3 percent growth with 1 percent inflation, driven by productivity gains from artificial intelligence (AI).

History

Historical Context

The Federal Reserve Act of 1913 established the Federal Reserve System in response to financial crises like the Panic of 1907, which highlighted the need for a central banking structure. This act aimed to stabilize the economy and regulate inflation. Today, discussions on interest rates and the current unemployment rate of 4.6% reflect ongoing challenges in U.S. monetary policy and its global implications.

1 of 2

Story summary

Kevin Hassett, director of the National Economic Council (NEC), says there is potential to cut U.S. interest rates that are misaligned with global rates.
He stresses consensus within the Federal Reserve and deficit reduction to support lower rates.
Hassett notes unemployment has risen to 4.6 percent.
He projects 3 percent growth with 1 percent inflation, driven by productivity gains from artificial intelligence (AI).

1 / 2