US NEC Director Hassett says there's plenty of room for the Fed to cut rates; high wage growth is driving people towards the labour market

• People are coming off the sidelines into labour market.
• Inflation numbers will be a key factor for Fed decision.
• Can easily see a 4-5% growth this year.

on AI 

• Says AI boom can improve productivity and economic growth .

Director Hassett's comments suggest a dovish posture for future Fed rate cuts, emphasizing that strong wage growth is encouraging labor market participation. This implies the Fed could have room to ease rates, especially if inflation trends allow for it, which could shift market expectations around monetary policy and impact asset prices accordingly.