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Interest Rate Cuts Possible Amid Optimism for Growth

12/17/2025

Summary

Story summary

NEC Director Kevin Hassett stated that U.S. interest rates have significant potential for cuts, as they are misaligned with global rates.
He emphasized the need for deficit reduction to ensure economic stability and expressed optimism about achieving 3% growth with 1% inflation, driven by AI productivity gains.
Recent jobs data showed mixed results, with the unemployment rate rising to 4.6% due to distortions from a government shutdown.
Hassett remains confident there will not be another government shutdown and indicated that President Trump will soon announce a nominee for Federal Reserve chair.

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Story summary

NEC Director Kevin Hassett stated that U.S. interest rates have significant potential for cuts, as they are misaligned with global rates.
He emphasized the need for deficit reduction to ensure economic stability and expressed optimism about achieving 3% growth with 1% inflation, driven by AI productivity gains.
Recent jobs data showed mixed results, with the unemployment rate rising to 4.6% due to distortions from a government shutdown.
Hassett remains confident there will not be another government shutdown and indicated that President Trump will soon announce a nominee for Federal Reserve chair.