Hassett’s Race to the Bottom: Cheap Money, Political Agendas, and the War on Market Signals
Hassett’s Core Argument: Cut Rates Now, Cut Them Fast
Kevin Hassett, the current National Economic Council Director and a top contender to replace Jerome Powell as Fed Chair, recently told CNBC that the Federal Reserve is moving too slowly to cut interest rates. He pointed to faster-than-expected U.S. GDP growth—4.3% in Q3—as evidence that the economy is roaring, even suggesting that AI is suppressing inflation and creating new headroom for easier money.
He argued that the Fed is lagging behind central banks around the world and that more aggressive rate cuts are overdue.
The White House Wants a Dovish Fed—Big Surprise
President Trump has been hammering the Fed for months, demanding deeper rate cuts. Hassett’s comments closely mirror Trump’s view, and there’s no doubt he’s positioning himself politically for the Fed Chair nomination this May. Trump made it clear in a national address: he wants someone who believes in “lower interest rates by a lot.”
This isn’t subtle. It’s monetary policy by executive decree.
Hassett’s AI Argument: A Convenient Distraction
Hassett claims the AI boom is creating disinflationary pressure, making room for the Fed to be more aggressive with cuts. This is partially true—tech does lower costs. But using that as an excuse to suppress interest rates is irresponsible.
Why? Because cost-saving innovation should lead to organic disinflation, not justification for artificially cheap money. Interest rates are supposed to signal the cost of capital. When the market is distorted by central planning, we lose that signal—and chaos follows.
GDP Is Up—But That’s Not the Whole Story
Hassett praised Trump’s tariffs for shaving the trade deficit and juicing GDP by an estimated 1.5%. But this is sleight-of-hand economics. Tariffs may improve the balance sheet on paper, but they act like stealth taxes on consumers and businesses, raising costs and weakening supply chains.
The result? You get a brief GDP sugar high, followed by long-term inefficiencies and economic distortion. Real prosperity doesn’t come from punishing trade partners—it comes from producing value, not manipulating metrics.
Interest Rates Aren’t Political Tools—Or At Least They Shouldn’t Be
The most dangerous part of Hassett’s pitch is the weaponization of interest rates for political gain. He says the Fed is behind the curve, but who sets that curve? The market? Or the President’s campaign team?
When rates are dictated by politicians—or even by Fed chairs who cater to political pressure—monetary policy stops being a stabilizing force and becomes a lever for short-term electoral advantage.
And let’s not forget: the same cheap money policies that the establishment pushes during downturns are never unwound when times are good. They become the new normal. Until the next crisis. Then they do it again. And again.
Fed Independence: Hollow Words from a Political Insider
Hassett insists that Fed independence is “really important,” even while echoing Trump’s public demands for looser money. That’s not independence—that’s central banking with a leash.
You can’t campaign for a job by parroting the President and then claim you’ll be objective once you get the seat. The minute the Fed becomes just another tool of the executive branch, it stops being a safeguard and becomes a weapon.
What the Public Feels Is More Real Than GDP
Despite the 4.3% GDP number, Trump’s approval on the economy is just 37%. Hassett blames the media, saying people are misinformed. But that’s just another elite cop-out.
GDP isn’t groceries. It's not rent. It’s not the cost of heating your house or affording a mortgage. Americans aren’t dumb—they feel the distortion. When money is cheap but goods are expensive, when jobs exist but quality of life shrinks, they know something’s wrong.
No amount of spin can mask the squeeze of bad policy.
Real Economics Demands Real Signals
Here’s the hard truth: interest rates should be set by the market, not a political cartel of economists and power-hungry bureaucrats.
When you distort rates, you distort everything else: investment, savings, prices, behavior. That’s how we got the housing bubble. That’s how we got 2008. That’s how we got decades of hollow growth, inflated assets, and broken trust.
The solution isn’t more cuts. The solution is to get out of the way and let price discovery happen.
Final Thought: Don’t Fall for the Rate-Cut Mirage
Hassett may be the next Fed chair. If he is, brace yourself for another round of cheap money, debt-driven growth, and manipulated markets. It might feel good for a while. But it always ends the same way: inflation, bubbles, and bailouts.
What we need isn’t a Fed that chases headlines. We need a monetary framework that respects market forces, rewards real production, and stops using money as a weapon of political convenience.
If we can’t get that, maybe it’s time to question whether this centralized monetary experiment has any future at all.
⚠️ The Reset Is Coming—Be Ready Before It Hits
The next wave of monetary control won’t come with sirens—it’ll come silently through FedNow, CBDCs, and programmable money disguised as innovation. The war on real value is already underway, and if you’re not preparing for it, you’re walking blindfolded into a trap.
📥 Download the Digital Dollar Reset Guide by Bill Brocius—your blueprint for resisting financial surveillance, protecting your savings, and exiting the collapsing fiat matrix.
Don’t wait for the Fed to pull the plug. Act now—or get locked out later.
