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>>Key Fed Rate Cut Prediction: White House Advisor Discloses a Practical 25 Basis Point Decrease

Key Fed Rate Cut Prediction: White House Advisor Discloses a Practical 25 Basis Point Decrease

crypthub

11/12/2025, 7:20:29 PM

Fed Rate Cut Forecast

White House NEC chair Kevin Hassett says a 25‑basis‑point Fed cut is more likely than a 50‑bp reduction. He cites modest inflation, stable growth data, and the Fed’s preference for gradual moves. Aggressive easing isn’t justified by current economic indicators. Market expectations often outrun the central bank’s actual actions.

Hassett's Personal View

Hassett disclosed that, if he sat on the FOMC, he would support a rate cut. He believes the economy can tolerate only a modest stimulus. However, he cautions that Chairman Jerome Powell may take a different approach. This highlights how individual viewpoints can shape policy outcomes.

Implications for Markets

A 25‑bp cut signals confidence in economic stability, affecting bonds, equities, and currencies differently. Bond yields may edge lower, while equity growth forecasts could be revised modestly. Currency values might adjust to new interest‑rate differentials. Investors may need to recalibrate long‑term strategies.

Reliability and Outlook

Hassett’s comments carry weight, but the final decision rests with the whole FOMC and evolving data. Key indicators to watch include employment, wage growth, inflation reports, and sector performance. Global trade and manufacturing trends also influence the Fed’s calculus. Market participants should stay adaptable as new information emerges.