Hassett reiterates his stance on rate cuts, supports the proposal for regional Fed presidents to reside in their districts for three years

Odaily Planet Daily News - Kevin Hassett, a leading contender to become the next Federal Reserve Chair and current Director of the White House National Economic Council, reiterated his expectation on Friday that Fed policymakers will cut interest rates at next week’s meeting. “Now is a good time for the Fed to cautiously cut rates again,” he said on Fox Business Channel. He predicts that as the economy recovers from the recent federal government shutdown and new factories come online, an economic boom will occur in early 2026. Hassett also publicly supported Treasury Secretary Bessent’s initiative to add a residency requirement for the appointment of regional Fed presidents. Hassett stated, “The original intention of establishing all these regional Federal Reserve Banks was to ensure a federal system where regions with different concerns have a voice in decision-making.” On Wednesday, Bessent said she would push for new rules requiring candidates for regional Fed president to have lived in their respective districts for at least three years—a move that is the latest in a series of efforts to reshape the institution following the Trump administration’s accusation that the Fed has engaged in ‘mission creep’ beyond monetary policy. (Jin10)