Hassett says Fed made ‘prudent call,’ signaling White House OK with quarter-point cut

If the National Economic Council Director Kevin Hassett indicates any indicator, the decision to reduce the fundamental borrowing rate of the Federal Reserve seems to be sitting well with the White House.

In a CNBC interview on Thursday, the day after the Fed’s movement, Hassett said that the administration and the new Fed Governor Stephen Miran forced it for a greater reduction. Miran, who was unauthorized as the president of the Council of Economic Consultants, pushed him for half a score, but was increased from 11 to 1 at the Federal Open Market Committee.

However, Hassett did not criticize the committee’s decision.

“As a result, it is a precautionary policy to move slowly and steadily and to move towards a goal, to monitor the coming of the data,” Squawk Box. ” “So I know that my colleague Stephen wants to go to 50 [basis points]But I think 25 is a very broad consensus and I think this is a good first step towards much lower proportions towards the right direction. “

President Donald Trump, who nominated Miran, has not yet commented on the FED’s decision.

In the past, Trump launched a criticism threshold at the Central Bank, and Jerome Powell, the head of the fidelity, called “too late” and quick and aggressive cuts. The President argued that the federal fund rate should be 3 percent lower, and that the updates published on Wednesday were a position that was not reflected in FOMC projections during the future policy process.

Hassett said that it tends to grow more than 3% for the third quarter, and that there is normally that there is nothing to discuss for lower interest rates, especially inflation of inflation.

However, Trump said there is a need for interruptions to support the fighting US housing market and to help manage the financing costs for the country’s $ 37 trillion debt.

Hassett, which was mentioned in the short list of Trump’s elections to chair Powell next year, said that it is an appropriate movement to evaluate economic variables in the game and to decide on increasing reduction.

“I think the Fed is looking at all the models, having various opinions, and in this economy, slow, but what will we do with higher inflation than the target? ‘ “They devote the baby in this decision, and I think this is probably a very cautious call.”