National Economic Council Director Kevin Hassett, who is reportedly being considered as a potential Federal Reserve Chair pick by President Trump, expressed support for cautious interest rate reductions during an interview on Fox Business Friday.
Hassett endorsed Scott Bessent’s view on Federal Reserve Bank presidents, specifically referencing Bessent’s idea of implementing a three-year residency requirement for these positions. He noted that he has not discussed this issue with President Trump.
On economic matters, Hassett predicted that the recent government shutdown had a larger economic impact than anticipated but forecasted "a bigger rebound in the first quarter" of 2026. He expressed high expectations for growth, stating he "would be disappointed with 3% growth" for the first and second quarters.
Looking further ahead, Hassett suggested the possibility of "a 4% productivity figure for 2026" and claimed the "AI economy is moving faster than 1990s dot-com economy." He also pointed to "massive momentum into next year as factories open."
Regarding trade policy, Hassett warned of "massive disruption if Supreme Court nixes tariffs" and mentioned that Sections 232 and 301 trade measures are among potential backup options.
