COINOTAG News reported on December 9 that Kevin Hassett, head of the White House National Economic Council, argued it would be irresponsible for the Federal Reserve to set an interest rates target for the next six months in advance, stressing policy should follow economic data.
During a CNBC interview, he said the Fed chair’s job is to observe data, adjust policy, and explain the rationale behind actions, warning that fixed-time commitments risk misalignment with incoming indicators.
This stance reinforces a data-driven approach to monetary policy, where communications reflect the rationale for shifts rather than prespecified timelines, supporting credibility and risk-managed reactions to macro signals.
It underscores the prevailing emphasis on credible interest rates outlook grounded in transparent interpretation of economic data and adaptive policy settings, helping markets align expectations with a cautious, evidence-based trajectory.
Source: https://en.coinotag.com/breakingnews/hassett-pre-specifying-fed-rate-targets-is-irresponsible-policy-must-follow-data-cnbc-interview
