WH Economic Adviser Hassett: Fed will decide interest rates, we respect independence

Source Fxstreet

In an interview with Fox News on Tuesday, Kevin Hassett, Director of the US National Economic Council (NEC), said that they are getting ready to present a plan to US President Donald Trump on "who and when for tariff talks," per Reuters.

Key takeaways

"Trump wants fair and reciprocal trade, will weigh that as he decides whether to accept countries' offers."

"Focused like laser beam on big trading partners that have been giving us trade deficits for years."

"The Fed will decide interest rates, we respect independence."

"We are prioritizing trading partners for talks."

Market reaction

Risk flows continue to dominate the action in financial markets following these comments. At the time of press, the S&P 500 Index was up 3.45% on the day at 5,235 points.

Tariffs FAQs

Tariffs are customs duties levied on certain merchandise imports or a category of products. Tariffs are designed to help local producers and manufacturers be more competitive in the market by providing a price advantage over similar goods that can be imported. Tariffs are widely used as tools of protectionism, along with trade barriers and import quotas.

Although tariffs and taxes both generate government revenue to fund public goods and services, they have several distinctions. Tariffs are prepaid at the port of entry, while taxes are paid at the time of purchase. Taxes are imposed on individual taxpayers and businesses, while tariffs are paid by importers.

There are two schools of thought among economists regarding the usage of tariffs. While some argue that tariffs are necessary to protect domestic industries and address trade imbalances, others see them as a harmful tool that could potentially drive prices higher over the long term and lead to a damaging trade war by encouraging tit-for-tat tariffs.

During the run-up to the presidential election in November 2024, Donald Trump made it clear that he intends to use tariffs to support the US economy and American producers. In 2024, Mexico, China and Canada accounted for 42% of total US imports. In this period, Mexico stood out as the top exporter with $466.6 billion, according to the US Census Bureau. Hence, Trump wants to focus on these three nations when imposing tariffs. He also plans to use the revenue generated through tariffs to lower personal income taxes.

Disclaimer: For information purposes only. Past performance is not indicative of future results.
placeholder
Ripple Price Prediction: Exchange inflows surge as XRP slides, what comes next?Ripple (XRP) corrected along with other major digital assets, including Bitcoin (BTC) and Ethereum (ETH), and traded at $2.08 at the time of writing on Wednesday. The drawdown cut across the crypto market, causing the total capitalization to drop 3.2% to $2.736 trillion.
Author  FXStreet
Yesterday 06: 01
Ripple (XRP) corrected along with other major digital assets, including Bitcoin (BTC) and Ethereum (ETH), and traded at $2.08 at the time of writing on Wednesday. The drawdown cut across the crypto market, causing the total capitalization to drop 3.2% to $2.736 trillion.
placeholder
Gold price buying remains unabated; fresh all-time high and counting amid trade jittersGold price (XAU/USD) scales higher for the second straight day on Wednesday – also marking the fifth day of a positive move in the previous six – and touches a fresh record high, around the $3,283-3,284 area during the Asian session.
Author  FXStreet
Yesterday 06: 02
Gold price (XAU/USD) scales higher for the second straight day on Wednesday – also marking the fifth day of a positive move in the previous six – and touches a fresh record high, around the $3,283-3,284 area during the Asian session.
placeholder
EUR/USD rises to near 1.1350 ahead of Eurozone HICP inflation dataEUR/USD is trading around 1.1340 during the Asian hours on Wednesday, rebounding after two consecutive sessions of losses.
Author  FXStreet
Yesterday 06: 03
EUR/USD is trading around 1.1340 during the Asian hours on Wednesday, rebounding after two consecutive sessions of losses.
placeholder
Bitcoin Faces Pressure As Report Flags Chinese Sell-Off PlansA new report by Reuters suggests that China may be looking to liquidate large stashes of confiscated Bitcoin, potentially exerting downward pressure on BTC’s price. Sources cited by Reuters
Author  NewsBTC
1 hour ago
A new report by Reuters suggests that China may be looking to liquidate large stashes of confiscated Bitcoin, potentially exerting downward pressure on BTC’s price. Sources cited by Reuters
placeholder
Bitcoin Price Holds Steady, But Futures Sentiment Signals Caution – DetailsAccording to a recent CryptoQuant Quicktake post, while Bitcoin (BTC) has seen a steady rise in price from November 2024 to February 2025, sentiment in the cryptocurrency’s futures market has
Author  NewsBTC
1 hour ago
According to a recent CryptoQuant Quicktake post, while Bitcoin (BTC) has seen a steady rise in price from November 2024 to February 2025, sentiment in the cryptocurrency’s futures market has
goTop
quote