Federal Reserve chairman frontrunner Hassett: The CPI report is shockingly good, and the Fed has ample room to cut rates.

White House economic adviser Kevin Hassett welcomed the newly released Consumer Price Index (CPI) report on Thursday, saying the U.S. economy is showing high growth and low inflation. In an interview, he stated:

I'm not saying we've already declared victory on the issue of prices, but this CPI report is shockingly good. Wage growth has outpaced price increases, American taxpayers will receive substantial tax refunds next year, and the government will help push mortgage rates lower.

The Federal Reserve has plenty of room to cut interest rates.

As previously predicted, if you really go all out on total supply, that will put downward pressure on prices, and that's exactly what we're seeing now.

As one of the leading candidates to succeed Fed Chairman Powell as the next Fed Chairman, Hassett also said the Fed should be more transparent in the future:

I think the Federal Reserve needs to be 100% more transparent than it is now. No matter who serves at the Fed, all the cards need to be laid on the table so that we can truly understand what's happening inside this institution.

In a prime-time address to the nation on Wednesday, U.S. President Trump promised the economy would improve next year, and mentioned his tax cuts, tariff measures, and his plan to replace Powell. Trump is expected to announce Powell’s successor early next year.

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