Hasset: U.S. Inflation Is Actually Below Target, Fed Has 'Plenty of Room' to Cut Rates

BlockBeats News, December 20th, White House Economic Advisor Hassett said in an interview with Fox Business Channel on Friday that President Trump's statement that inflation is low is correct, despite data, public opinion, and the majority of economists not agreeing with this view.

Hassett stated that it is a common mistake to assess inflation on a year-on-year basis, and it is better to look at the price pressure on a three-month moving average basis. This means that price pressure has not significantly exceeded the Fed's 2% target and is actually below the target. Hassett explained that based on the three-month average price pressure, the current inflation rate is about 1.6%. The U.S. core inflation is "at or below the target level," giving the Fed "sufficient room" to cut interest rates.