Jobs Report Should Not Cause Fed to Hike Rates, Hassett Says

Summary

Kevin Hassett discusses the April jobs report, describing a 'rip-roaring jobs market' and dismissing concerns that the data should cause the Fed to hike rates. He argues that supply-side shocks keep inflation stable, making rate cuts likely this year. Hassett also addresses AI's impact on jobs, trade tariffs, and U.S. debt, ruling out any debt restructuring or default.

• April jobs report beat estimates at 115,000 new jobs, with broad-based gains.
• Hassett sees a supply-side shock keeping core inflation stable despite oil price rises.
• He expects rate cuts this year under a potential Warsh Fed chair.
• AI-adjacent jobs are growing fastest; AI job destruction not visible in data yet.
• Administration has a backup plan for tariffs after court ruling against 122 duties.
• Hassett rules out any form of U.S. debt default or restructuring.
• Federal employment reduced to lowest since World War II.