The director of the White House National Economic Council, Kevin Hassett, said on Thursday, the 29th, that the U.S. economy still has room for the Federal Reserve (Fed, the U.S. central bank) to keep interest rates unchanged at the next meeting in December, despite the stronger-than-expected growth of the Gross Domestic Product (GDP) in the third quarter.
“I think the president of the Fed Warsh will guide the committee to make a prudent, data-driven decision. And if we are growing and inflation is still high, then the argument for a rate hike would be significant at the next meeting (…) but not if it is growth driven by the supply side, then I think there is room to leave things as they are and the inflation under control,” Hassett told Fox Business.
According to him, the U.S. economy is on track for a GDP growth of 4% in 2026 and despite the rise in energy prices, the inflation trajectory is on a positive path. “It is a legitimate concern, a legitimate feeling about high gasoline prices. But we need to look at things in aggregate,” he added.
