Trump advisor and Fed chair meet amid inflation concerns

Kevin Hassett, Director of the National Economic Council, has disclosed that he is having regular meetings with Federal Reserve Chairman Jerome Powell.

These meetings aim to exchange views on the U.S. economy, allowing President Trump's opinions to be heard while respecting the Fed's independence.

During an appearance on CBS' Face The Nation, Hassett clarified that the meetings are not intended to influence interest rates.

Hassett noted a 40 basis point reduction in 10-year Treasury rates, suggesting market confidence in declining inflation.

However, Powell testified before the Senate Banking Committee on February 11, stating that the central bank does not “need to be in a hurry” to adjust interest rates, which casts doubt on future rate cuts in 2025.

The U.S. Bureau of Labor Statistics' January 2024 Consumer Price Index report revealed annual inflation at 3% in January 2025, a 0.1% increase over expectations.

This led to Bitcoin (CRYPTO:BTC) prices falling below $95,000 as investors anticipated a high interest rate environment.

"Jerome Powell is an independent person. The Federal Reserve's independence is respected. The point is the president's opinion can also be heard — he is the president of the United States," Hassett stated.

The CME FedWatch tool indicates that only 3% of market participants expect a 25 basis point rate cut at the Fed's March 2025 meeting, reflecting caution due to persistent inflation, a potential trade war, and other macroeconomic risks.

Lower interest rates typically encourage investment in assets like cryptocurrencies by making credit more accessible.