British News Agency

Hassett, one of the leading candidates to succeed Fed Chairman Jerome Powell, whose term ends in May, said that the explosion of artificial intelligence has boosted economic growth while simultaneously putting downward pressure on inflation, adding, “Looking at central banks around the world, the US has fallen far behind in rate cuts.”

US economic growth in the third quarter came in at 4.3% annualized, surpassing Dow Jones' consensus forecast of 3.2%. Hassett said that 1.5% of this growth occurred due to the reduction in the US trade deficit, thanks to tariffs imposed by President Donald Trump.

The Fed reduced interest rates by a quarter point on December 10. This was the third rate cut this year, but the central bank indicated that future cuts might be slower. Three Fed officials voted against the quarter-point cut. This was the most opposition since 2019. After this month's meeting, Powell said that the quarter-point cut decision was a “tough decision.”

Trump has repeatedly criticized the Fed for not cutting rates as quickly as he wanted. Hassett's nomination has raised concerns among some Fed watchers due to his close ties to the president. Hassett said last week that the independence of the Fed is “really important.” In his speech to the nation last week, Trump said he would announce his Fed chairman nominee soon, emphasizing that he would choose “someone who believes that interest rates need to be significantly reduced.”