WH Economic Adviser Hassett: Stronger data could support 50 basis point cut

White House Economic Adviser Kevin Hassett recently indicated that the Federal Reserve has ample room to cut rates this month. He mentioned that if stronger economic data comes in, a 50 basis point cut could be on the table. This has led market participants to react, particularly in the U.S. bond and equity markets, with expectations of rate cuts stimulating consumption and investment, thus aiding economic growth. However, the decision to cut rates depends significantly on other economic indicators such as inflation and employment, prompting investors to remain vigilant. Overall, it's crucial to assess how the current economic conditions will evolve for the U.S. economy.