Hassett criticizes the Federal Reserve's delayed decision-making and calls for an early start to the interest rate cut cycle

White House National Economic Council Director Brian Deese recently stated that the Federal Reserve made a strategic mistake in its policy decision last week. He pointed out that current inflation levels are approaching the Fed’s target, and the conditions for rate cuts are essentially in place, yet the Fed still chose to keep interest rates steady, which appears overly cautious.

Inflation Pressures Easing, Policy Adjustment Window Opens

According to official data, U.S. inflation indicators are gradually declining and are not far from the Fed’s 2% target. Against this backdrop, traditional monetary policy logic suggests that it is time to consider adjusting policy stance. Deese’s remarks actually reflect the White House’s new assessment of the economic situation — the current phase no longer requires sustained high interest rates to suppress inflation, but rather calls for providing necessary liquidity support for economic growth.

Rate Cut Expectations Rise, Market Sentiment Diverges

The economic committee director’s statement will undoubtedly influence market expectations. The initiation of a rate cut cycle means different opportunities and risks for various market participants. On one hand, rate cuts typically stimulate demand for risk assets; on the other hand, policy shifts often lead to market re-pricing. The market is still digesting the Fed’s policy signals, and discussions about when to finally start rate cuts are intensifying.

Market observers generally believe that this pressure from the White House indicates that the timetable for rate cuts may accelerate. Regardless of when the Fed ultimately acts, Deese’s criticism has already become a force driving policy shifts.