Former Fed Candidate Expert Assesses Strongest Candidate for Fed Chair and Upcoming Meeting

Source: CryptoNewsNet Original Title: Former Fed Candidate Expert Assesses Strongest Candidate for Fed Chair and Upcoming Meeting Original Link: https://cryptonews.net/news/finance/32095727/ Former FED Board of Governors candidate Judy Shelton evaluated the current state of the US economy on her television program and made critical predictions about the upcoming FED meeting.

Shelton also strongly supported White House Economic Council Director Kevin Hassett’s potential candidacy for Fed Chair.

Shelton described a rate cut at the Fed’s meeting next Wednesday as “almost inevitable.” Shelton noted that the 32,000 job losses in the private sector were particularly concerning, and emphasized the importance of Personal Consumption Expenditures (PCE) data coming in line with expectations.

According to Shelton, if inflation data had been higher, it could have strengthened the hand of hawkish members of the Fed who “want to maintain restrictive interest rates.” However, Shelton noted that currently, small businesses, in particular, are being crushed by loan interest rates of 8% to 12%, which is hindering growth, and that the interest rate cut is justified.

The program also questioned White House Economic Council Director Kevin Hassett’s comments that the American economy had entered a “historic golden age.” Hassett predicted that increased demand from tax breaks on tips, overtime, and Social Security payments, combined with the efficiencies brought about by artificial intelligence, would stimulate the economy.

Judy Shelton stated that she “100% agreed” with Hassett’s view. Referencing Treasury Secretary Scott Bessant’s definition of “shared prosperity,” Shelton stated that we are entering a period where the financial and real sectors will benefit together, and that growth rates could approach 4%.

Asked for his thoughts on President Trump’s nomination of Kevin Hassett as the next Fed Chair, Shelton was full of praise for his colleague.

“I think Kevin Hassett is a superb economist and a great choice,” Shelton said. Shelton emphasized the critical importance of Hassett’s belief in the Trump administration’s “supply-side economics” agenda (lower taxes, reduced regulations, and smart energy and trade policies), noting his keen understanding of the inflation-reducing effects of these policies and the importance of access to capital.

Finally, addressing concerns about AI-related layoffs, Shelton emphasized that foreign investment and new manufacturing companies will require workforce resources. He added that he is optimistic that technology-driven productivity gains could improve the long-term employment outlook.