Federal Reserve Chair Nominee Hassett Warns: Timing of December Rate Cut Pause 'Very Bad'

BlockBeats News, November 21, Thursday evening local time, following Morgan Stanley, JPMorgan Chase retracted its prediction of a 25 basis point rate cut by the Federal Reserve in December. The bank still expects the next rate cuts to take place in January and April next year.

However, Kevin Hassett, one of the Federal Reserve Chair candidates mentioned by President Trump and White House National Economic Council Director, earlier on the same day, stated that for the world's largest central bank, pausing rate cuts at this moment would be a "very bad time" as the government shutdown has weighed on fourth-quarter economic growth. He expects the government shutdown to lead to a 1.5 percentage point decline in fourth-quarter Gross Domestic Product (GDP). At the same time, he pointed out that the September Consumer Price Index (CPI) showed inflation performing better than expected. (Jin10)