Fed chair candidate Hassett says U.S. is way behind the curve on lowering rates

Core Viewpoint - The Federal Reserve is perceived to be slow in cutting interest rates despite stronger-than-expected economic growth in the U.S. during the third quarter, which was reported at 4.3% compared to the Dow Jones consensus of 3.2% [2][3]. Group 1: Economic Growth - U.S. economic growth in the third quarter was 4.3%, significantly higher than the expected 3.2% [2]. - 1.5% of the economic growth was attributed to President Trump's tariffs, which helped reduce the U.S. trade deficit [2]. Group 2: Federal Reserve Actions - The Federal Reserve lowered interest rates by a quarter point on December 10, marking the third cut of the year, but indicated that future reductions may be slower [3]. - The recent rate cut decision faced dissenting votes for the first time since 2019, highlighting internal disagreements within the Fed [3]. Group 3: Political Context - Kevin Hassett, the National Economic Council Director, is viewed as a potential successor to Federal Reserve Chairman Jerome Powell, raising concerns about his closeness to President Trump [3]. - Hassett emphasized the importance of the Fed's independence in a recent interview [4].