White House National Economic Council Chair Kevin Hassett has urged for immediate interest rate cuts, highlighting a projected 1.5% GDP decline in Q4 due to a government shutdown and slowing economic growth. Hassett emphasizes that current economic conditions justify monetary easing, although the Federal Reserve's independence might delay such actions.
Key issues include reduced consumer spending, business investment hesitation, and moderating inflation. While rate cuts could lower borrowing costs for mortgages, loans, and credit cards, they also pose risks of inflation and asset bubbles. The Federal Reserve may consider action at its next meeting or call an emergency session if economic conditions deteriorate further.
White House Economic Chief Calls for Immediate Rate Cuts Amid GDP Concerns
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