Donald Trump's chief economic adviser, Kevin Hassett, stated that a potential end to the conflict with Iran and lower oil prices could create conditions for the Federal Reserve to cut interest rates. This was reported by Bloomberg, according to UNN.
Details
In an interview with Fox News, Hassett stated that the White House expects energy prices to drop sharply once a deal is reached with Tehran. According to him, this would give the Federal Reserve more room to ease monetary policy.
"We expect energy prices, once a deal is reached, to drop sharply. And when that happens, the Fed will have plenty of opportunity to make the right move by lowering rates,"
The White House expects oil prices to fall
The statement came after Donald Trump announced on social media that negotiations with Iran are "proceeding in an orderly and constructive manner." At the same time, Hassett emphasized that he respects the independence of the Federal Reserve.
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He also stated that the rise in inflation in the U.S. is largely linked specifically to energy prices. According to Trump's adviser, the risk of rising fuel costs due to a potential Iranian blockade of the Strait of Hormuz remains a serious political challenge for Republicans ahead of the U.S. midterm elections.
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