Economic Shifts Expected: Fed Rates Could Drop

White House economic adviser Kevin Hassett anticipates that higher productivity in the U.S. economy will lead to a Federal Reserve interest rate cut. He believes that rates could decrease if Kevin Warsh, President Trump's nominee, assumes the position of Federal Reserve chair.

White House economic adviser Kevin Hassett indicated potential shifts in U.S. monetary policy during a statement to CNBC on Monday.

Hassett anticipates that enhanced productivity within the nation's economy could allow the Federal Reserve to lower interest rates.

He pointed out that this potential change hinges on whether Kevin Warsh, President Donald Trump's nominee, becomes the new Federal Reserve chair.

(With inputs from agencies.)