On December 24, Kevin Hassett, Director of the White House National Economic Council and widely viewed as a leading contender for the next Fed chair, publicly criticized the Federal Reserve’s pace of rate cuts, stating that the U.S. has “fallen seriously behind global central banks” in the current easing cycle. Despite U.S. Q3 GDP growth coming in at a strong 4.3% annualized—well above expectations—Hassett argued that monetary policy has failed to adapt to structural shifts in the economy.
He highlighted that the surge in AI-driven investment is boosting productivity while exerting medium-term disinflationary pressure, reducing the justification for maintaining elevated real interest rates. In a global context, Hassett noted that U.S. hesitation on policy normalization is increasingly equivalent to relative tightening. Although the Fed has already cut rates three times this year, including a 25bp cut in December, the decision drew the highest number of dissenting votes since 2019—underscoring deepening internal divisions.
Politically, President Trump has continued pressing for faster and deeper rate cuts and is expected to announce a new Fed chair nomination soon. This has brought renewed market attention to both the independence and future direction of U.S. monetary policy. While Hassett reiterated respect for central-bank independence, his stance clearly reflects a more growth-oriented policy framework.
Bitunix Analyst View: From a macro-structural perspective, the U.S. is entering a critical transition phase where headline data remains strong, but underlying trends have shifted. AI-led productivity gains are reshaping the traditional relationship between inflation and growth, while high interest rates continue to weigh on lower-income households and small businesses. The core policy risk today is not easing too early, but waiting too long after structural disinflation has taken hold—potentially forcing sharper adjustments later. This backdrop explains why markets are increasingly pricing in a “policy lag correction.”
