• Introduces Kevin Hassett, White House NEC Director, and asks if the Fed should cut rates given 3% inflation and affordability concerns.
    speaker1
  • Kevin Hassett
    Chairman Powell has done a good job unifying the committee. We should probably continue to get the rate down, but do so prudently with an eye on the data.
  • Asks how restrictive the Fed is and for a forward-looking path of cuts.
    speaker1
  • Kevin Hassett
    Hates to count cuts; the Fed Chair's job is to watch the data and adjust. It would be irresponsible to pre-commit to a path.
  • Asks about political speculation regarding a potential Fed Chair role.
    speaker1
  • Kevin Hassett
    Supports the President 100%. Markets have it wrong about the President having a tough choice; there are several excellent candidates.
  • Presents the affordability problem, noting 23% price increases under Biden and inflation above target, asking how to handle it.
    speaker1
  • Kevin Hassett
    The way to fix the problem is for real wage growth to rise enough to offset past inflation. Real standard of living has gone up by about $1,200 this year.
  • Notes part of the plan to improve affordability is lower mortgage/car rates via Fed cuts, but the 10-year yield has moved higher, raising questions about Fed control and bond market inflation concerns.
    speaker3
  • Kevin Hassett
    The bond market is much improved from the beginning of the year but fluctuating due to Fed uncertainty. If we get inflation down with positive growth (like the 90s due to positive supply shocks), there's plenty of room for the 10-year to go down.
  • Asks if advisors are telling the President to recalibrate his response to affordability and if he acknowledges public sentiment.
    speaker1
  • Kevin Hassett
    There's a huge amount of positive economic news coming, including factory groundbreakings. Consumer sentiment craters during government shutdowns, but hard indicators didn't. Going into next year, tax policies (no tax on tips/overtime) will put an extra $1,600-$2,000 in people's pockets.
  • Asks about healthcare costs, subsidies, and potential bipartisan solutions to affordability.
    speaker1
  • Kevin Hassett
    There was room for negotiation on cost-sharing in the 'big beautiful bill.' The focus should be on fundamentals, like lowering drug prices, which saw negative CPI for two years under Trump and expects a third.
  • Asks about President Trump's Truth Social post on a single rulebook for AI to maintain US leadership.
    speaker1
  • Kevin Hassett
    Has seen a draft of the AI executive order. It's a top priority to win the AI race. The order will clarify one set of rules to prevent states from over-regulating and fining companies.
  • Asks about President Trump's unusual public declaration of involvement in the Netflix-Warner Bros. antitrust decision.
    speaker4
  • Kevin Hassett
    It's not rare for presidents to have opinions on big mergers. The DOJ will conduct its analysis (Herfindahl Index, competition). The President is interested in ensuring thorough analysis for the right choice.
  • Asks if the relationship between companies and the President is different now regarding influence.
    speaker1
  • Kevin Hassett
    The Trump administration is the most transparent he's seen. Past administrations didn't tell you; Trump lets you know how he feels, which makes him a wonderful person to work for.
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