The White House states that increased productivity creates conditions for the Federal Reserve to cut interest rates

2026-04-07 07:31:48

White House economic adviser Kevin Hassett said in a CNBC interview on Monday that he believes the U.S. economy is experiencing a “positive supply shock” triggered by productivity gains brought about by capital expenditures and artificial intelligence, which would create conditions for the Federal Reserve to cut interest rates.

“ If we’re going through this kind of supply shock caused by large-scale capital spending and productivity improvements from AI, it will continue to put downward pressure on inflation, thereby easing the policy pressure on the Federal Reserve. They should be able to lower interest rates,” Hassett said.

Hassett also said that if Federal Reserve chair nominee Kevin Warsh, nominated by President Trump, is formally sworn in, he expects the Federal Reserve to implement rate cuts.

 Open a futures account through a major platform partnership with Sina Finance—safe, fast, and guaranteed
![](https://img-cdn.gateio.im/social/moments-51bbcac4cc-0285bf1cdf-8b7abd-badf29)

Endless information and precise analysis—right on the Sina Finance app

Byline: Guo Mingyu

View Original

This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.