WH economic advisor Hassett: There is plenty of room to cut rates

WH economic advisor Kevin Hassett is speaking on CNBC and says:

• There is plenty of room to cut rates
• US rates are out of touch with the rest of the world
• on the jobs data sees a solid upward trajectory.
• Trump thinks interest rates could be lower.
• If I were there, I’d have to negotiate with the rest of the committee.
• Fed would have to see what kind of consensus could be reached.
• Thinks we can reach 3% growth and 1% inflation again
• Deficit reduction is a key to the economy to lower rates.
• We are pretty positive that the Supreme Court will rule in our favor, and if not we have backup plans.
• We have deals 232s and 301s to use as a backstop for tariffs if the Supreme Court rules against the tariffs.
• If Trump has a good reason, and I agree with it, I will present it to the others at the Fed
• Need consensus based on facts, data.
• On jobs data, he is bullish on 2026
• The jobs data was colored by the governement shutdown.
• ON GDP growth, looking at supply side, need to have north of 4%
• On jobs, AI, seeing AI-trained workers have increased their productivity and wages

Earlier today, The latest US jobs and retail sales data painted a mixed picture of the economy, shaped in part by distortions from the recent government shutdown. Nonfarm payrolls showed a decline in October followed by a rebound in November, making it difficult to gauge the true trend in hiring, while the unemployment rate moved up to 4.6% from 4.4% which could be a worry but keep the Fed on the downside tilt.

On the consumer side, October retail sales were flat at the headline level, but the control group rose a solid 0.8%, pointing to firmer underlying demand that feeds directly into GDP. Together, the reports suggest moderating but still resilient economic momentum, leaving markets data-dependent and keeping the focus on whether growth can remain supported without reigniting inflation pressures.

For your guide:

• Section 301 and Section 232 are two US trade-law tools used to impose tariffs, but they serve different purposes and carry different market implications. Section 301 of the Trade Act of 1974 is aimed at addressing unfair foreign trade practices, such as intellectual property theft, forced technology transfers, or discriminatory policies. Under Section 301, the US Trade Representative (USTR) investigates whether another country’s practices are unreasonable or burden US commerce and, if so, can impose targeted tariffs, quotas, or other trade restrictions. These measures are often country-specific and product-specific, and they tend to be used as negotiating leverage in broader trade talks.
• Section 232 of the Trade Expansion Act of 1962, by contrast, is grounded in national security concerns. It allows the US Department of Commerce to investigate whether imports of certain goods—such as steel, aluminum, autos, or critical supply-chain items—threaten national security. If a risk is found, the president can impose tariffs or quotas regardless of country, making Section 232 actions broader and more structural. Markets typically view Section 232 tariffs as more persistent and harder to unwind, since they are justified on security grounds rather than trade imbalances.

For traders and markets, Section 301 tariffs are often seen as tactical and negotiable, while Section 232 tariffs are viewed as strategic and long-lasting. Both can affect inflation, supply chains, corporate margins, currencies, and risk sentiment, but Section 232 actions generally

This article was written by Greg Michalowski at investinglive.com.