White House Advisor Hassett Advocates for Fed Rate Cut in December Amid Cooling Inflation Data On November 20, 2025, White House National Economic Council Director Kevin Hassett stated that recent economic indicators point to the need for the Federal Reserve to reduce interest rates at its December meeting. Speaking in an interview, Hassett emphasized that the data particularly softening inflation and a moderating labor market supports further monetary easing to sustain growth without overheating the economy. This comes as the Fed navigates a delicate balance post its October 25 basis point (bp) cut, with markets now pricing in heightened odds of another reduction. Key Elements of Hassett's Remarks Data-Driven Rationale: Hassett highlighted metrics like the Consumer Price Index (CPI) showing core inflation at 2.6% year-over-year in October (down from 2.7% prior) and the Producer Price Index (PPI) easing to 1.8%. He argued these trends, combined with unemployment ticking up to 4.2%, suggest the Fed's benchmark rate currently at 4.50%-4.75% remains restrictive. Expected Cut Size: Aligning with his earlier comments, Hassett reiterated a preference for a measured 25 bp trim, calling it "realistic" over a more aggressive 50 bp move, to avoid signaling panic. Fed Independence: While supportive of cuts, Hassett reaffirmed the administration's respect for the Fed's autonomy, distancing from past criticisms by President Trump. He noted he'd consider chairing the Fed if nominated, but stressed decisions rest with the Federal Open Market Committee (FOMC).