NEC's Hassett Says a Rate Hike Would Be a Mistake Right Now

Kevin Hassett said productivity gains should help keep core prices under control, suggesting an easing inflation backdrop. The comments are macroeconomic in nature and imply lower underlying price pressure, but they do not include new data or a policy decision. Market impact is limited unless the remarks are taken as signaling a more favorable inflation path for rates.

Analysis

Kevin Hassett said productivity gains should help keep core prices under control, suggesting an easing inflation backdrop. The comments are macroeconomic in nature and imply lower underlying price pressure, but they do not include new data or a policy decision. Market impact is limited unless the remarks are taken as signaling a more favorable inflation path for rates.