National Economic Council Director Kevin Hassett said Tuesday that the Federal Reserve is not cutting interest rates quickly enough, even though the U.S. economy grew at a much faster-than-expected pace in the third quarter.
Hassett, a leading contender to succeed Federal Reserve Chairman Jerome Powell when his term ends in May, said the artificial intelligence boom is boosting economic growth while simultaneously putting downward pressure on inflation.
“If you look at central banks around the world, the U.S. is way behind the curve in terms of lowering rates,” the top White House economic advisor told CNBC in a “Money Movers” interview.
U.S. economic growth came in at an annual rate of 4.3% in the third quarter, faster than the Dow Jones consensus of 3.2%. Hassett said 1.5% of that growth was due to President Donald Trump’s tariffs reducing the U.S. trade deficit.
The Fed lowered interest rates by a quarter point on Dec. 10, the third cut this year, but the central bank indicated that the pace of future reductions could be slower.
