Hassett: The Fed has ample room to cut interest rates significantly.

Hassett, the White House National Economic Council director and a leading candidate to become the next Federal Reserve Chairman, said on Tuesday that he believes the Fed has "ample room" to cut interest rates significantly. When asked if he would push for the "significant rate cuts" Trump desires if appointed, he responded, "If the data shows we can do that—like now—I think there's absolutely room to do it." When further pressed on whether this meant cuts exceeding 25 basis points, he answered unequivocally, "Yes." Trump, in an interview with Politico on Tuesday, said that rapid rate cuts would be a "litmus test" for his Fed chairmanship nominee. When asked whether he would be loyal to Trump or to independent economic judgment if appointed chairman, Hassett said, "I will stick to my own judgment, and I believe the president trusts my judgment too."