Hassett says ending Iran war may create room for Fed rate cut
White House chief economic adviser Kevin Hassett has indicated that a resolution in tensions with Iran could create an opportunity for the Federal Reserve to lower interest rates. Hassett expressed confidence that a potential drop in oil prices would provide the necessary room for such a monetary policy adjustment.
The White House anticipates that energy prices would decrease following the establishment of a deal with Iran. This expected decline in energy costs could alleviate inflationary pressures, offering the Federal Reserve greater flexibility in its interest rate decisions.
Hassett made these remarks during an appearance on Fox News' Sunday Morning Futures. His comments coincided with a social media post from President Donald Trump, who stated that negotiations with Tehran "are proceeding in an orderly and constructive manner."