Hasset: US Inflation is Actually Below Target, Fed Has 'Plenty of Room' to Cut Rates

BlockBeats News, December 20th, White House economic adviser Hassett said Friday in an interview with Fox Business that President Trump's remark that inflation is low is correct, despite data, public opinion, and most economists not agreeing with this view.

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