Hassett on Powell Staying at Fed, Inflation and Oil Spike

Summary

Kevin Hassett, Director of the National Economic Council, discusses the Federal Reserve's policy stance, arguing that rate hikes into a temporary oil shock would be a mistake. He highlights strong economic data and a productivity boom that should keep core inflation under control, and expresses disappointment with Fed Chair Powell's decision to remain as governor. He also addresses the impact of Iranian sanctions on oil prices and criticizes European energy policies.

• Hassett says the Fed and ECB should not hike rates due to a temporary oil spike, as core inflation is fine.
• He believes productivity gains will keep core prices under control, similar to the 1990s boom.
• He is disappointed with Powell staying at the Fed but expects new leadership under Kevin Warsh.
• Hassett views the oil price surge from Iranian sanctions as temporary and expects resolution quickly.
• He defends the administration's actions on Iran and criticizes Germany's energy policies.
• He notes strong economic data including low jobless claims and a capital spending boom.
• He argues that cutting rates could supercharge the economy, especially residential construction.
• Hassett rejects the idea of an export ban on oil to lower gasoline prices.