Markets 'Terribly Wrong' to Price in Rate Hike: Hassett

Summary

Kevin Hassett discusses the strong May jobs report and argues the market is wrong to price in a Fed rate hike, attributing high growth to the Trump administration's supply-side policies. He also comments on oil price disruptions related to Iran and sees lower risk premiums ahead.

• U.S. added 172,000 jobs in May, beating estimates.
• Hassett says the market's pricing of a rate hike is 'terribly wrong'.
• He argues oil-driven inflation is temporary and supply-side boom allows growth without inflation.
• Construction employment rising as factories are built under the Big Beautiful Bill.
• Hassett expects manufacturing jobs to follow construction.
• He warns of short-term oil disruption from Iran but expects resolution soon.
• Risk premiums should fall once Iran nuclear threat is removed.