Skip to Content News Archives Economy Energy Oil & Gas Renewables Electric Vehicles Mining Commodities Agriculture Real Estate Mortgages Mortgage Rates Finance Banking Insurance Fintech Cryptocurrency Work Wealth Smart Money Wealth Management Investor Personal Finance Family Finance Retirement Taxes High Net Worth FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials More Innovation Information Technology FP500 Podcasts Small Business Lives Told Tails Told Shopping Financial Post Store Obituaries Place a Notice Advertising Advertising With Us Advertising Solutions Postmedia Ad Manager Sponsorship Requests Classifieds Place a Classifieds ad Working Profile Settings My Subscriptions Saved Articles My Offers Newsletters Customer Service FAQ News Economy Energy Mining Real Estate Finance Work Wealth Investor FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials HomePMN BusinessHassett Says Ending Iran War May Create Room for Fed Rate CutKevin Hassett, President Donald Trump’s chief economic adviser at the White House, signaled he’s confident that an eventual drop in oil prices will create space for the Federal Reserve to lower interest rates.Author of the article: You can save this article by registering for free here. Or sign-in if you have an account.Kevin Hassett, director of the National Economic Council, during a Bloomberg Television interview outside the White House in Washington, DC, US, on Friday, March 6, 2026. Hassett said the Trump administration has "many, many" tools to address the surge in oil prices. Photographer: Al Drago/Bloomberg Photo by Al Drago /Bloomberg(Bloomberg) — Kevin Hassett, President Donald Trump’s chief economic adviser at the White House, signaled he’s confident that an eventual drop in oil prices will create space for the Federal Reserve to lower interest rates.Subscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.Subscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one account.Share your thoughts and join the conversation in the comments.Enjoy additional articles per month.Get email updates from your favourite authors.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one accountShare your thoughts and join the conversation in the commentsEnjoy additional articles per monthGet email updates from your favourite authorsSign In or Create an AccountorThe White House expects energy prices to drop once there’s a deal with Iran, Hassett said on Fox News’ Sunday Morning Futures, just as Trump posted on social media that negotiations with Tehran “are proceeding in an orderly and constructive manner.”“Again, we expect energy prices, as soon as there’s a deal, to plummet,” Hassett said. “And when that happens, then there will be a lot of room for the Fed to do the right thing at lower rates.”Get the latest headlines, breaking news and columns.By signing up you consent to receive the above newsletter from Postmedia Network Inc.A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Top Stories will soon be in your inbox.We encountered an issue signing you up. Please try againHe emphasized that he respects the Fed’s independence and praised Kevin Warsh, who was sworn in as Fed chair on Friday with Trump saying he wants him to be “totally independent” and “do your own thing.”While a surge is US fuel prices caused by Iran’s closing of the Strait of Hormuz is a growing political risk for Trump and his Republicans for midterm elections in November, Hassett argued that accelerating inflation is largely driven by energy prices.“If you look at the last few data reports, the energy prices were absolutely concerning but the core was barely moving at all,” he said. “And I think that as soon as we see energy prices going back down you could actually be looking at negative inflation because of the energy price going down.”The US consumer price index rose 3.8% in April, the fastest pace almost three years. The core CPI, which excludes food and energy, was up 2.8%, the most since September. Join the Conversation This website uses cookies to personalize your content (including ads), and allows us to analyze our traffic. Read more about cookies here. By continuing to use our site, you agree to our Terms of Use and Privacy Policy.