Rate cut looms -- and so does Jerome Powell’s exit

Another rate cut seems likely at next week’s Federal Reserve meeting -- unless Chair Jerome Powell invokes the latest economic data as grounds for a postponement.

Former White House Economic Advisor Steve Moore said he thinks there’s “a high probability” of a rate cut. He said the question is whether it will be 25 basis points or 50 basis points.

“Those are the two real options on the table right now,” he said during an interview with The National News Desks Jan Jeffcoat on Wednesday.

“I think the markets do expect that rate cut to come,” he added.

The potential cut comes as President Donald Trump is poised to announce a new chairman for the Federal Reserve.

“There’s a lot of high intrigue for who that might be,” Moore said, noting that Trump has hinted that he wants to hire Kevin Hassett, who currently serves as the director of the National Council of the U.S., as well as Treasury Secretary Scott Bessent.

“Everyone is predicting that Kevin Hassett -- who is a very fine economist. I’m a big fan of his. I think he’d be an excellent choice -- but that means Jerome Powell would be out sometime in the next few months.”

Moore also said there’s “no love loss” between Trump and Powell.

"The two have kind of been adversaries for a long time, so Trump is eager to get him out and get someone in who he feels will help grow this economy. And Trump would like more rate cuts,” he said. “The most important thing, by the way, for the Fed is to keep inflation under control and so far this year we’ve had pretty modest inflation.”

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