White House’s Kevin Hassett Predicts 25 bps Interest Rate Cut, Strong Dollar, and Lower Import Prices
White House National Economic Council Director Kevin Hassett forecasted a 25 bps interest rate cut by the Fed, saying a 50 bps move is unlikely. He argued that falling prices of imported goods reflect a cost adjustment, not true inflation. Hassett endorsed a strong dollar policy as a “smart choice” and indicated that 50-year mortgages could improve housing affordability. On trade, he warned of alternative measures if the Supreme Court rejects current customs duties. Fed member Stephen Miran also weighed in, labeling the Fed’s policy “too tight” and suggesting looser monetary policy ahead. Miran highlighted stablecoin growth as potentially equivalent to 30–60% of early-2000s savings rates. These comments on monetary policy, import prices, and mortgage terms will guide market expectations for future interest rate cuts and currency strength.
Neutral
Hassett’s confirmation of a likely 25 bps interest rate cut and endorsement of a strong dollar policy offers limited direct impact on crypto markets. Historically, modest rate cuts can boost risk assets, including cryptocurrencies, by lowering borrowing costs and encouraging liquidity. However, his dismissal of a larger 50 bps cut tempers speculation and may restrain a sharp rally. Miran’s call for looser policy adds a mild positive signal but lacks a clear timeline. In the short term, traders might see a neutral reaction: any slight bullish sentiment from a rate cut outlook is offset by the Fed’s cautious stance. Over the long term, gradual rate reductions could support crypto growth if sustained, but for now, volatility may remain range-bound as markets digest these measured policy cues.