Watch CNBC's full interview with White House National Economic Council Director Kevin Hassett

Summary

White House National Economic Council Director Kevin Hassett discusses the incoming Fed Chair Kevin Warsh, the Fed's independence, inflation risks from an oil shock, and the state of the economy. He expresses optimism about AI-driven productivity, deregulation, and GDP growth, while downplaying fears that oil prices will feed into core inflation. Hassett also defends the administration's economic policies and criticizes the previous Fed's approach.

• Hassett supports Kevin Warsh as Fed Chair, believing he will restore focus on the dual mandate and independence.
• He argues that an oil shock is transitory and unlikely to feed into core inflation, citing stable core CPI and producer prices.
• Hassett highlights positive supply-side shocks from AI productivity, corporate tax cuts, and deregulation.
• He predicts GDP growth could settle at 4-5% for the rest of the year.
• He notes that the spot oil market shows reluctance to buy, suggesting potential price declines.
• Hassett criticizes the previous Fed for losing its way and engaging in non-monetary policy issues.
• He emphasizes the administration's respect for Fed independence while expecting data-driven decisions.
• Market highs in Nasdaq, S&P, and Dow are noted, with Hassett attributing them to strong earnings and supply-side reforms.