Fed Chair Popular: Future Path Should Not Be Announced in Advance, Reaffirming Data Dependence

Hassett, director of the White House National Economic Council, said on Monday that it would be "irresponsible" for the Federal Reserve to announce in advance the path of interest rates over the next six months, stressing that monetary policy should be flexible and strictly based on economic data. "The job of the Fed chair is to look at the data, adjust when appropriate, and explain why I'm taking a particular action," Hassett said. "It would be irresponsible to say, 'I'm going to do this in the next six months'." Hassett, a favourite to succeed current chairperson Powell, was asked how many more rate cuts he expected to need in 2026. He avoided specific forecasts: "I don't want to disappoint people with speculation about the number of rate cuts, but I can say it's about the data." Hassett praised Mr. Powell for co-ordinating the FOMC's internal deliberations in the lead-up to the meeting: "I think he did a good job of'managing a house full of cats' and successfully rallying consensus to cut rates. I believe Powell agrees with me that we should probably keep lowering rates."